Spokane County Real Estate Market Update

Spokane County Real Estate: A Market in Transition

The real estate market in Spokane County has shown a mild year-over-year decrease in home values, with the average home value falling from $431,728 to $428,617, representing a 0.72% drop. This decline marks a significant shift following years of substantial increases in home values, indicating a leveling of the market. The current trend hints at a stabilization phase, reflective of broader market dynamics.

Historically, the Spokane real estate market experiences a lull during December and January, before ramping up in February and peaking around June or July. The current calm phase aligns with these seasonal patterns, positioning the market for its busy season. The anticipation is that the latter part of winter and spring will bring increased activity, as has been the case in previous years.

Impact of Mortgage Rates and Seasonal Trends

The performance of the Spokane real estate market in 2023 is notable, with 9,239 new listings reported, reflecting a 7.8% decline from the previous year. The median sales price also saw a slight dip, going from $430,000 in 2022 to $420,000. This trend is indicative of the market’s sensitivity to mortgage rates, which peaked in May 2022 and have been gradually recovering.

Despite the challenges posed by rising interest rates, the market managed to retain much of its stability. Industry experts anticipate that mortgage rates will continue to ease, potentially averaging around 6% throughout 2024, following a notable drop to 6.6% in December 2023. This gradual easing of rates is expected to support a modest improvement in the number of homes for sale and slight price growth in the upcoming year.

Regulatory Changes and Market Adjustments

In terms of regulatory changes, starting January 1, 2024, Washington will require residential real estate brokers to have a signed brokerage services agreement before providing any services to consumers. This move aims to enhance transparency and protection for consumers, ensuring that all parties have a clear understanding of the services and terms involved upfront.

Additionally, the real estate market in Spokane County is adapting to new flexibility options for sellers, particularly in handling agent compensations. This change comes in response to the Burnett Trial Verdict and aligns with broader national and state-level amendments. These adjustments are expected to provide sellers with more control over their transactions, potentially influencing market dynamics in the years to come.