Are you considering moving to Spokane, Washington? With its diverse neighborhoods, affordable housing options, and top-rated schools, Spokane offers an attractive place to call home. In this blog post, we will explore the best neighborhoods in Spokane, the current housing market trends, top schools, amenities, and available properties. Let's dive in!
How is the Spokane housing market doing currently?
According to Realtor.com, the Spokane County, WA housing market in February 2024 is characterized as a balanced market. This equilibrium indicates that the supply and demand for homes are in harmony, creating a scenario where neither buyers nor sellers have a significant advantage. The balance in the market fosters stability and ensures a fair playing field for all parties involved in real estate transactions.
Median Listing Home Price Soars to $488.7K
One of the standout features of the Spokane County, WA 2024 housing market is the impressive surge in the median listing home price. As of February 2024, the median listing home price stands at $488.7K, reflecting a substantial 8.6% year-over-year increase. This upward trajectory highlights the robust demand for real estate in the region, contributing to the overall growth of the housing market.
Median Listing Home Price vs. Median Home Sold Price
The correlation between the median listing home price and the median home sold price is a crucial indicator of market dynamics. In Spokane County, WA, homes are not just listed at higher prices; they are also being sold at commendable rates. The median home sold price in February 2024 reached $410K, showcasing the resilience and competitiveness of the local real estate market.
Sale-to-List Price Ratio: Achieving Perfect Balance
The sale-to-list price ratio is a key metric that often reflects the negotiation dynamics between buyers and sellers. In Spokane County, WA, homes achieved a remarkable 100% sale-to-list price ratio in February 2024. This means that, on average, homes were sold for approximately the asking price, creating a balanced and fair environment for both buyers and sellers.
Median Days on Market: 36 Days
Time is of the essence in the Spokane County, WA housing market, as homes spend an average of 36 days on the market before being sold. This metric provides valuable insights into the pace of transactions and the overall efficiency of the market. Interestingly, the trend for median days on the market has shown a slight increase compared to the previous month, emphasizing the evolving nature of the real estate landscape in Spokane County.
Spokane Housing Market Trends – FEBRUARY 2024
Total MLS Volume Overview
According to the Spokane Association of Realtors, for February 2024, the Net Closed Volume in the Spokane housing market reached an impressive $186,210,736. This substantial figure reflects the financial transactions associated with 1,070 listings processed, resulting in 467 closed sales. A noteworthy uptick of $27,241,825 is observed in Net Closed Volume compared to the previous month, showcasing a vibrant market.
Comparing the current statistics to the same period last year reveals a positive trend. Net Closed Volume has surged by $3,124,428, underlining the market's resilience. While listings have increased by 198, closed sales have seen a significant boost of 69, pointing towards sustained growth and demand.
Sales Volume Breakdown
Breaking down the sales volume, the mandatory sales volume for February 2024 amounted to $178,138,636, emphasizing the core transactions that contribute substantially to the market's vitality. On the other hand, the Non-Mandatory sales volume, standing at $8,072,100, adds a dynamic dimension to the overall market activity.
Pending Sales and Future Prospects
Looking ahead, the pending sales for February 2024, figured on list price, reached an impressive $348,316,268. This substantial figure indicates a robust pipeline of potential transactions, hinting at continued market momentum. A total of 824 pending sales were processed, showcasing the sustained interest and activity within the Spokane housing market.
Comparative Analysis
Comparing the current data to the preceding month, we observe a decline of 195 listings, offset by a commendable increase of 54 closed sales. This shift suggests a market that is responsive to demand fluctuations while maintaining a healthy balance between supply and demand.
Furthermore, the year-over-year analysis indicates an upward trajectory. The increase in listings by 198, coupled with a surge of 69 closed sales, reflects the Spokane housing market's resilience and attractiveness to both buyers and sellers.
Spokane Housing Market Forecast for 2024 and 2025
What are the Spokane real estate market predictions? According to Zillow, the Spokane housing market is currently exhibiting interesting trends and key metrics that provide valuable insights for both homebuyers and sellers.
1. Average Home Value and Days on Market
As of January 31, 2024, the average Spokane home value stands at $371,192, showing a marginal decrease of 0.3% over the past year. Additionally, homes are going pending in around 31 days, indicating a relatively brisk pace in the market.
2. Inventory and New Listings
On January 31, 2024, the for-sale inventory in Spokane is recorded at 678, showcasing the availability of housing options. During the same period, 165 new listings were added, contributing to the overall market activity and options for potential buyers.
3. Median Sale and List Prices
The median sale price as of December 31, 2023, is $345,167, while the median list price on January 31, 2024, is $404,950. This indicates a potential margin for negotiation between sellers and buyers in the current market conditions.
4. Sale to List Ratio and Percentage Trends
With a median sale to list ratio of 0.997 as of December 31, 2023, the market reflects a close alignment between listing and sale prices. Furthermore, 25.4% of sales were recorded over list price, contrasting with 51.0% of sales under list price, illustrating a varied landscape of buyer and seller negotiations.
Spokane MSA Housing Market Forecast
Looking ahead, the housing market forecast for the Spokane Metropolitan Statistical Area (MSA) provides a glimpse into future trends. The forecast, as of January 31, 2024, predicts a -0.1% change in the market by February 29, 2024, followed by a 0.7% increase by April 30, 2024, and a significant 5.5% rise by January 31, 2025. This forecast indicates a positive trajectory, suggesting potential growth and stability in the Spokane housing market.
The Spokane Metropolitan Statistical Area (MSA) encompasses various counties in Washington state, playing a pivotal role in the regional real estate landscape. The MSA includes Spokane County and surrounding areas, contributing to the overall housing market's size and diversity. With a forecast indicating growth, the Spokane MSA presents opportunities for both homebuyers and sellers, making it a noteworthy region within the Washington state real estate market.
Is Spokane a Buyer's or Seller's Housing Market?
Assessing the current state of the Spokane housing market, it can be characterized as exhibiting characteristics of both a buyer's and a seller's market. The average home value has experienced a slight decrease of 0.3% over the past year, suggesting a potential advantage for buyers. However, the median list price as of January 31, 2024, stands at $404,950, indicating a competitive pricing scenario. The equilibrium between these factors signifies a balanced market, providing opportunities for both buyers and sellers to engage in transactions that align with their preferences and goals.
Are Home Prices Dropping in Spokane?
Contrary to a significant drop in home prices, the Spokane housing market is witnessing a modest decrease of 0.3% in the average home value over the past year. This marginal decline suggests a relatively stable market where home prices are not experiencing a drastic downturn. The nuanced nature of this decrease indicates a measured adjustment rather than a sharp decline, providing a sense of stability for those considering entering the real estate market in Spokane.
Will the Spokane Housing Market Crash?
Based on current indicators and the Spokane housing market forecast, there is no imminent sign of a market crash. The forecast projects a positive trajectory, with a predicted increase of 5.5% by January 31, 2025. The gradual rise in market values and the absence of drastic fluctuations suggest a resilient housing market. However, it's essential to stay vigilant and monitor market trends, as real estate conditions can be influenced by various external factors. As of now, the Spokane housing market appears stable, and the forecast points towards continued growth.
Is Now a Good Time to Buy a House in Spokane?
Considering the current dynamics of the Spokane housing market, now can be deemed a favorable time to buy a house for those in the market. The marginal decrease in the average home value and the balanced conditions between buyers and sellers provide a conducive environment for making a purchase. Additionally, the forecasted growth of 5.5% by January 31, 2025, indicates potential appreciation in property values. However, individual considerations such as personal finances, long-term plans, and housing needs should always play a crucial role in the decision-making process.
Spokane Real Estate Investment: Should You Invest in Spokane?
Spokane, located in the eastern part of Washington State, is a city that has been gaining attention from real estate investors over the past few years. With a population of around 200,000, Spokane is the second-largest city in the state and has a metropolitan area of nearly 600,000 people.
The Spokane real estate market offers a mix of owner-occupied and renter-occupied units, with single-family homes accounting for the majority of housing units. According to data from Neighborhoodscout, one and two-bedroom detached homes are the most common housing units in Spokane, with other types of housing such as duplexes, rowhouses, and converted apartments also prevalent.
The geography of Spokane limits the housing supply, which contributes to the city's strong market performance. The desire to preserve views and community limits the height that builders can construct, while the nearby mountains and national parks limit how far the city can expand. Additionally, the influx of Californians fleeing the state's high housing costs and regulations is driving up real estate prices across the West Coast and the Rocky Mountains, including Spokane.
The Spokane real estate market offers a great investment opportunity for real estate investors. With its strong market performance, limited housing supply, and affordability compared to other West Coast cities, Spokane is a city that should be on the radar of any real estate investor looking to invest in a long-term, lucrative market.
Here are the top reasons why you should invest in the Spokane real estate market:
Affordable housing market
Compared to other cities in the Pacific Northwest like Seattle and Portland, Spokane's housing market is relatively affordable. This means that investors can buy properties at a lower cost and potentially see a higher return on investment. Additionally, Spokane's low cost of living and affordable housing market make it an attractive place for young professionals and families, which drives demand for rental properties.
Strong rental market
Speaking of rental properties, Spokane has a strong rental market. The city has a low vacancy rate, which means that properties tend to get rented quickly. Additionally, rental rates have been increasing steadily over the past few years, making it a great time to invest in rental properties in Spokane.
Economic growth
Spokane's economy is diverse and growing. The city is home to a number of major employers, including healthcare providers, universities, and manufacturing companies. Additionally, the city's downtown area has undergone significant revitalization in recent years, which has attracted new businesses and residents to the area.
Outdoor recreation opportunities
Spokane is located in eastern Washington, which means it's surrounded by beautiful outdoor spaces. From skiing and snowboarding in the winter to hiking and biking in the summer, there's no shortage of outdoor activities for residents and visitors alike. This makes Spokane an attractive place to live, which drives demand for real estate.
Potential for appreciation
Finally, Spokane's real estate market has the potential for appreciation. While prices have been steadily increasing over the past few years, they're still relatively affordable compared to other cities in the Pacific Northwest. As the city continues to grow and attract new residents and businesses, property values could increase even more in the coming years.
Rental Regulations and Eviction Process in Spokane
Another important factor to consider when investing in the Spokane real estate market is the rental regulations in the area. Unlike some other states, rent control is illegal in Washington State, which means landlords have more flexibility in setting rental rates. They can raise the rent as much as they want, as long as they comply with the appropriate notice period and have not issued the notice to discriminate or retaliate against the tenant. Landlords must provide the tenant with at least 60 days' notice before raising the rent.
In addition to this, landlords also have the right to evict tenants who fail to pay rent or violate the terms of the lease agreement. Before starting the eviction process, landlords must provide tenants with a form called a 14-Day Notice to Pay or Vacate. If the tenant fails to pay rent or comply with the terms of the lease agreement, the landlord can file an eviction lawsuit. Depending on the basis for eviction, the tenant has between 3 and 5 days to vacate the property.
There are some lease violations that are deemed “non-curable.” These non-curable violations require a 3-Day Notice to Quit, and tenants cannot fix the violation and are required to move out by the end of the 3 days. Additionally, tenants can be evicted if they stay in the property even a day after their written lease ends (and have not arranged for a renewal). The required notice time given to tenants is 20 days regardless of their tenancy type.
Overall, the rental regulations in Spokane are landlord-friendly, giving property owners more control over their investments. However, it's important for landlords to follow the proper legal procedures when raising rent or evicting tenants to avoid any legal issues.
In conclusion, Spokane is an attractive city for real estate investors for several reasons. With an affordable housing market, strong rental market, diverse and growing economy, outdoor recreation opportunities, and potential for appreciation, it's definitely worth considering as a place to invest in real estate.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTShas extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Spokane.
References:
- https://www.spokanerealtor.com/market-snapshot
- https://www.spokanerealtor.com/mls-weekly-news-information
- https://www.zillow.com/Spokane-wa/home-values
- https://www.neighborhoodscout.com/wa/spokane/real-estate
- https://www.realtor.com/realestateandhomes-search/Spokane_WA/overview
