The Spokane housing market has always been one that attracted a lot of attention. In recent times, owing to a healthy, growing economy and lower living costs, the city has seen many new settlers, resulting in a booming real estate market. Historically, Spokane has enjoyed a highly competitive seller’s market, which means there are more buyers than there are houses to buy. But after the pandemic and the economic crisis that followed, is the Spokane housing market still hot? Let’s find out.
Quick overview of Spokane Real Estate Market in 2021
- Home sales went up by 5.2% from last year
- Around 750 closed single-family home sales (in 2020, it was 713)
- Average closed price and the median closed price went up by 34.95% and 28.8%, respectively
- An average of 12 days of supply (meaning, the remaining inventory can get sold in 12 days)
- Real estate inventory went down by 61%
- The median rent price in 2021 is $1,295
- The median home value in 2021 is $315,967
- The rough percentage of vacant homes is 7.7%
- 1-year appreciation rate (the increase in value of properties) is higher than many other cities at 17.3%
- The price-to-rent ratio (a ratio of home prices and annual rent rates) is 20.33
Buying a house in Spokane in 2021
Spokane’s housing market has always been brisk, favoring sellers with a limited inventory. However, the pandemic and the inflow of out-of-state buyers has resulted in a highly competitive market. In-state buyers have to fight off the cash offers from out-of-state buyers, the odds not always favoring them. In desperation, many buyers are waiving home inspections and contingencies to get an edge over the competition.
All the current predictions show that the real estate market in the city is not about to level out or favor buyers any time soon. In April 2021, over 80% of all offers on houses faced severe competition. What’s interesting to note is that the highest number of bid wars surround homes below the $400, 000 mark; some homes got up to 20 offers.
With such stiff competition, buyers are likely to face the odd end of the stick. Before the pandemic-induced real estate boom, the sellers were open to negotiation. Now, most homes are sold several thousand dollars over the asking price. To conclude, chances are that Spokane will remain a seller’s market for the rest of the year, and buyers will need to fight hard to find their dream home.
Home inventory in Spokane in 2021
The housing market in Spokane, as mentioned before, is highly competitive. The biggest reason for this is the rise in demand and the lack of inventory to meet the demand. In June, there were around 284 homes available for sale. This indicated a 12-day supply, which means the present inventory is likely to be exhausted in under 12 days.
To say that the inventory in the Spokane real estate market would be an understatement. The city doesn’t have enough development projects to meet the current demand. A possible solution would be new real estate development, which takes time. Until then, the inventory is likely to be dry for a while.
Conclusion
In 2021, Spokane continues to be a seller market through and through—a competitive one at that. This means that if you plan to buy a house in the city, you better be ready for limited options. In such conditions, hiring the right Realtor can help you find your dream home among several buyers vying for a residence in Spokane.