The Spokane housing market continued its momentum in May 2024, with several key indicators suggesting a period of potential transition. Let's delve into the details:
How is the Spokane Housing Market Doing in 2024?
Sales Volume on the Rise
Overall, the market saw a significant increase in sales activity. According to the Spokane Association of Realtors, compared to April 2024, net closed volume surged by over $58 million, with 821 homes finding new owners. This represents a 123-unit increase in sales compared to the previous month. Looking year-over-year, May 2024 also witnessed a healthy increase of $40 million in net closed volume, with 34 more homes sold compared to May 2023.
Inventory and Competition
While sales volume is up, it's important to consider inventory levels. May saw a rise in listings compared to both April 2024 (up 293) and May 2023 (up 284). This could be an early sign of a shift in the seller's market that dominated the past few years. With more options available, buyers might have a bit more negotiating power.
Market Pace Picks Up Slightly
The median days to pending haven't been readily available for this report, but the increase in sales and listings suggests a slightly faster market pace compared to the previous few months. This aligns with predictions for a busy spring market (March-June) as mentioned by some local realtors [Source: Predictions for the Spokane Real Estate Market in 2024 – Behler Homes].
Price Trends
While specific data for May 2024 isn't available in this report, reliable sources like Zillow and Redfin indicate a slight increase in median sale prices compared to last year. However, recent news articles suggest a potential cooling off, with the average home value in Spokane County dipping slightly year-over-year for the first time in over a decade The average home in the county saw a slight decrease in value this year.
Looking Ahead
The Spokane housing market in May 2024 presents an interesting picture. Increased sales activity alongside rising inventory suggests a potential shift towards a more balanced market. With rising interest rates being a factor nationwide, it will be interesting to see how affordability plays out in the coming months.
Spokane Housing Market Predictions: A Balanced Look
The Spokane housing market has been on a rollercoaster ride in recent years. After a period of significant growth, prices reached a peak in May 2022 before dipping slightly due to rising mortgage rates.
However, the market has shown signs of resilience, with prices recovering somewhat in 2023 and remaining stable so far in 2024. Let's delve into what experts predict for the Spokane housing market in the coming months and beyond.
Current Market Snapshot
- Stable Prices: Despite some forecasts of a decline, Spokane housing prices have held steady in 2024. The average home value sits at $397,068, reflecting a modest 1.6% increase over the past year.
- Fast Sales: Homes are moving quickly, going pending in around 7 days on average. This indicates a strong seller's market, with buyer demand still outpacing available inventory.
- Competitive Landscape: The median sale-to-list ratio sits at 1.00, suggesting buyers are willing to pay asking price or even above in some cases.
Spokane MSA Forecast: A Slight Downturn
While the short-term outlook appears stable, some forecasts predict a slight price correction in the next year. Data by Zillow suggests a potential decrease of 0.8% by August 2024 and a further decline of 0.9% by May 2025. It's important to remember that these are forecasts, and the actual market performance may differ.
Crash or Boom? Neither Likely
The data suggests a balanced market rather than a dramatic boom or bust. Here's why a crash is unlikely:
- Low Inventory: The lack of available homes continues to be a significant factor. Low inventory creates competition among buyers, keeping prices from plummeting.
- Steady Job Market: Spokane boasts a healthy job market, which fuels buyer demand and fosters a stable housing market.
A housing boom, on the other hand, also seems unlikely in the near future. Rising interest rates may cool buyer fervor and lead to a more balanced market with slower price growth.
What Does This Mean for You?
- Buyers: If you're looking to buy a home in Spokane, you may find some opportunities as prices adjust. However, be prepared for competition and potentially fast-moving listings.
- Sellers: The market may favor sellers in the short term due to low inventory. However, consider the long-term forecast when setting your listing price.
Remember, these are just predictions. Local market conditions and individual property features can significantly impact buying and selling decisions. Consulting a local real estate professional is the best way to get specific advice tailored to your situation.
Should You Invest in the Spokane Real Estate Market?
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.
To sum up, 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.
