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!
Current Spokane Housing Market Update
The following Spokane housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. Spokane is home to 28 neighborhoods, each with its own unique charm. If you’re looking for the best neighborhoods to live in, consider Lincoln Heights, East Central, and West Central.
These areas have become increasingly popular among homebuyers and renters alike. The vibrant communities, convenient location, and wide range of amenities make these neighborhoods highly desirable.
Current Median Listing Home Price
In October 2023, the median listing home price in Spokane, WA stood at $449.9K, reflecting a noteworthy 7.1% year-over-year increase. This upward trend in pricing indicates the resilience and growth of the real estate market in the region.
The median listing home price per square foot in Spokane, WA is reported at $208. This metric provides valuable insights for both buyers and sellers, helping them understand the relative value of properties based on their size.
Median Home Sold Price
For those interested in recent sales, the median home sold price in Spokane, WA was $380K. This data point is crucial for sellers to gauge the market and set competitive listing prices.
In October 2023, homes in Spokane, WA were typically sold for 100% of the asking price on average. This sale-to-list price ratio is an indicator of a robust and competitive market, showcasing buyer willingness to meet sellers at their listed prices.
Market Dynamics: Seller’s Advantage
As of October 2023, Spokane, WA is identified as a seller’s market. In a seller’s market, demand exceeds supply, putting sellers in a favorable position. This means there are more prospective buyers than available homes, driving up property values and potentially leading to quicker sales.
Median Days on Market: 39 Days
One of the key metrics for assessing market activity is the median days on market. In Spokane, WA, homes typically sell after an average of 39 days. This statistic provides valuable insights into the pace of transactions and can influence both buying and selling strategies.
Examining the trends, the median days on the market in Spokane, WA have seen a slight increase compared to the previous month and a modest uptick from the same period last year. This suggests a nuanced market behavior that buyers and sellers should be mindful of as they navigate the real estate landscape.
Spokane Housing Market Trends – October 2023
Net Closed Volume: According to the Spokane Association of Realtors, in October 2023, the Spokane housing market witnessed a net closed volume of $279,654,604. This figure reflects the total value of real estate transactions for the month.
Listings and Sales: A total of 1,220 listings were processed during this period, resulting in 673 closed sales. However, compared to the previous month, there was a noticeable decline. The net closed volume decreased by $33,487,030, listings were down by 292, and sales decreased by 47.
Year-on-Year Comparison: When compared to the same period last year, the decline becomes even more apparent. The net closed volume experienced a decrease of $47,332,505, with listings down by 22 and sales down by 63.
Breakdown of Sales Volume
Mandatory vs. Non-Mandatory Sales: The mandatory sales volume accounted for $257,275,208, while non-mandatory sales reached $22,379,396. This segmentation provides insights into the different categories of real estate transactions in Spokane.
Pending Sales and Market Dynamics
Pending Sales: The market also saw $336,882,350 in pending sales, calculated based on the list price. This indicates the potential future activity in the Spokane housing market.
Number of Pending Sales: A total of 782 pending sales were processed, suggesting a significant number of properties in the pipeline awaiting closure.
Analysis and Implications
While the Spokane housing market remains dynamic, the recent trends indicate a decline in key metrics compared to both the previous month and the same period last year. The decrease in net closed volume, listings, and sales may raise questions about the factors influencing these changes.
Factors Influencing the Market: Economic conditions, interest rates, and local factors can contribute to fluctuations in the real estate market. It is crucial to closely monitor these variables to understand the shifts in buyer and seller behavior.
Below is the summary of the monthly report for October 2023 released by the Spokane Association of Realtors for single-family residential/site-built properties on less than one acre and condominiums.
- Spokane home sales were down 13.2% from a year ago.
- The median closed price was $399,000, up 1.2% from a year ago.
- Inventory at the end of October 2023 totaled 1108 units, which represents a 2.5-month supply.
- Median Days on the Market were 19, up 26.7%.
- New listings decreased by 2.3%.
Spokane Housing Market Forecast 2023-2024
What are the Spokane real estate market predictions? According to Zillow, the average home value in Spokane is $374,653, reflecting a decrease of 2.4% over the past year. Additionally, homes in Spokane tend to go pending in approximately 18 days, indicating a relatively swift market.
Key Metrics
- For Sale Inventory (October 31, 2023): 932
- New Listings (October 31, 2023): 332
- Median Sale to List Ratio (September 30, 2023): 1.000
- Median Sale Price (September 30, 2023): $372,333
- Median List Price (October 31, 2023): $414,067
- Percent of Sales Over List Price (September 30, 2023): 33.3%
- Percent of Sales Under List Price (September 30, 2023): 39.1%
Spokane MSA Housing Market Forecast (2023 and 2024)
Looking ahead, the Zillow forecast for the Spokane Metropolitan Statistical Area (MSA) presents a nuanced picture. As of October 31, 2023, the forecast predicts a slight decrease of -0.1% by November 30, 2023, followed by a more significant decline of -0.6% by January 31, 2024. However, the forecast anticipates a rebound with an increase of 0.6% by October 31, 2024. This suggests a dynamic and evolving housing market in the Spokane MSA.
Metropolitan Statistical Area (MSA): Spokane, WA, is part of the Metropolitan Statistical Area, commonly known as MSA. An MSA is a geographical region with a relatively high population density at its core and close economic ties throughout the area. It is defined by the Office of Management and Budget (OMB) and used by various government agencies for statistical purposes.
Counties in the Spokane MSA: The Spokane MSA includes counties within its geographical boundaries. These counties collectively contribute to the overall dynamics of the housing market. For a comprehensive understanding of the market, it’s essential to consider the specific characteristics and trends within each county.
Note: The data presented reflects the latest available information as of October 31, 2023, and is subject to change based on market dynamics and external factors.
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 INVESTMENTS has 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
