Spokane is a beautiful city of around 230,000 people located in Washington State- and is known for outdoor living and great real estate at reasonable prices. The Spokane housing market has seen excellent growth over the last few years- and is a competitive area for buyers in 2023.
Below, we take a deep dive into the Spokane real estate market trends for the first part of 2023- as well as the forecast of what the immediate future may hold. The facts and statistics provided should help make it clearer whether Spokane, WA, is a worthwhile contender for landlords and property investment enthusiasts to spend their money.
Quick Look Spokane Housing Market Statistics as of April 2023
- The median home sold price in Spokane, WA, is $374,950.
- Home sale volume decreased by 35.4% year-0ver-year.
- Median days spent on the market was 13.
- 35.3% of homes in Spokane sold above the asking price.
- Most homes sold in Spokane went for within 0.2% of the list price.
Primary Influencing Factors in the Spokane Real Estate Market
Before we look at the 2023 real estate market trends in Spokane, WA, let's discuss the main driving factors that impact it overall.
The Growing, Diverse Economy
Spokane is the second-largest city in Washington. The city has undergone significant revitalization in recent years. It has a large number of major employers- including manufacturing companies and healthcare facilities which help keep unemployment rates below the national average. There is also a large student population.
Although the population of the city itself sits around 230,000, the Spokane Metropolitan area includes more than 600,000 people. It is the main city in Spokane County and has a strong economy that continues to grow.
What does all this mean for the housing market? In short, demand is high- and these things attract new buyers and renters to the area. This drives up the competition- both from those trying to buy a home and investors looking to profit from the rental income opportunities.
A Shortage in Housing Supply
On top of the growth in the economy bringing in more people and increasing demand, the shortage in available homes puts sellers in a great position. They are likely to get multiple offers on the same properties- creating bidding wars that drive up the home price. Home values have been on the rise all year- this is a big part of the reason why.
2023 Housing Market Trends in Spokane, WA
Now, let's take a closer look at the numbers for the first few months of 2023 compared to the previous year.
Median Price
The median home sold price climbed almost every month so far (with the exception of February to March, when there was a marginal decrease).
At the beginning of the year, the average home price was down 2.9% year-over-year to $335,000. In February, the number rose to just under $350,000- reducing the year-over-year deficit to 2.4%. Moving into March, prices stayed much the same, dropping the median by only $48- but it had a much larger YOY decrease of 8.5%.
April's report saw the best results of the year so far- indicating a positive trend for the market. At only 1.8% less than in 2022, the median price of homes sold in Spokane in April was $374,950. This tells us that demand is growing despite a dip in sales volume.
At the time of writing, the most recent median listing home price was $205 per square foot.
Home Sales Volume
There has been quite a drop in the number of homes sold each month in Spokane- which was expected. Supply is very low, so there are simply not as many properties available. It is not something experts are overly concerned about in terms of market cooling- since the rising home price median shows the demand is still there. If there were more houses available, the figures would probably be higher.
As of April, sales were down by 35.4% year-over-year. This has been the most significant decrease of the year so far, and March had the least significant deficit of 20.9%.
Median Days On the Market
As of April, properties in Spokane, WA, sell after an average of only 13 days- showing a hot market with quick buyers. Surprisingly, this is more than a week longer than the same period from the year before.
The year did not start this well. January saw a dramatic YOY increase from 10 days to 44 days, and February had an even larger jump from six days to 41 days. Since then, things have gotten better and better. If the trend continues, numbers could be back down to where they were in 2022.
Sale-to-List Price
Spokane homes generally sell for approximately the asking price. The sale-to-list price ratio hovers around the 100% mark- rarely dropping below 99%.
In the first half of 2022, more properties were selling above the list price than they are now, so the overall ratio has dropped. As many as 64.3% of homes in Spokane sold above asking in April 2022, but April 2023 only saw 35.3%.
It is a good figure compared to other areas, but there is no denying that people seem unable to stretch budgets quite as far as they used to- most likely due to higher interest rates on mortgages.
The Forecast for the Spokane Housing Market
Right now, the housing market in Spokane, WA, is in great shape. It could use a bump in inventory to bring sales volume up, but sellers are getting good money for their homes without pricing out buyers.
The forecast is for the median home price to rise further, but high mortgage interest rates should stop it from going too far. There are some concerns that dwindling supply could bring the market to a halt, but the evidence so far this year does not show any imminent cause for concern.
Market stay times are expected to continue reducing- drawing closer to the pace of the previous years, so if you want to invest, you need to move quickly.
Final Thoughts
To summarize, Spokane is one of the hottest housing markets of the moment- and if you can out-bid the competition, you could find yourself in a great investment position.
The rental population is growing due to job opportunities, students, and an increase in new business- so landlords looking for tenants are in luck. Many neighborhoods offer excellent single-family homes and apartments that are perfect for property investors- and are not budget-busting as it stands right now.
Spokane's low housing supply has created an ultra-competitive market that is slowly driving the median home price upwards, and the increasingly short market stays show that buyers are willing to pay more to secure their new properties. As long as values do not rocket so high that people are priced out due to inflated interest rates, Spokane real estate should continue to thrive.
Frequently Asked Questions
Is Spokane a seller's market?
Based on the fact that supply is seriously low and the demand remains as high as ever, Spokane is considered a seller's market. That said, it also shows signs of having a balanced market that gives buyers some negotiation power.
There is a fairly even divide between the number of homes that sell above and below the asking price, so it is not as one-sided as it may initially appear.
How likely is it that the Spokane housing market will crash?
Experts do not believe the Spokane real estate market is at risk of a crash. The demand is very high, real estate agent Spokane association says sales are strong, and the lack of housing means buyers are very competitive with their offers. As long as prices do not soar and then a sudden influx of housing appears, Spokane's housing market is likely to remain one of the hottest in the country.
Does the Spokane area offer affordable housing?
Spokane has an affordable housing market compared to other cities on the West Coast. Overall, the median home listing price is a good bit below the national average.
Hillyard is one of the more affordable areas- averaging around $272,000. It is not the cheapest city out there, but it is considered affordable for that part of the country. The best neighborhoods- such as Five Mile Prairie- are more expensive- with median values around $680,000.
What is the rental market like in Spokane?
There has long since been a strong rental market in WA. Spokane has arguably one of the best. Students and people moving for job opportunities opt to rent instead of sell, and they pay good prices to do so. It is considered a good city for landlords.
