Spokane Housing Market Report: August 2025 Analysis

Despite some market cooling elsewhere in the country, Spokane remains firmly in seller's market territory as we move through August 2025. With median home prices in the city reaching $411,157 (up 3.6% year-over-year) and county-wide prices at $434,700 (up 2.9%), we're seeing continued appreciation, though at a more sustainable pace than the dramatic increases of previous years.

What's particularly encouraging is the significant increase in housing inventory. July saw 1,786 homes for sale in the city proper—a 13.6% increase from June—while Spokane County inventory jumped 14.5% to 3,123 listings. This represents the most substantial month-over-month inventory growth we've seen in over two years.

Price Dynamics: The Full Picture

These numbers tell an important story: while 31% of homes still sell above asking price (indicating strong demand), the fact that 41% sell below asking suggests that pricing strategy is becoming more critical. Overpriced homes are sitting longer, while well-priced properties continue to move quickly.

Inventory Growth: A Double-Edged Sword

The 13.6% month-over-month inventory increase is the most significant development in Spokane's market this year. However, with only 2.1 months of supply available, we're still well below the 6-month supply typically considered a balanced market. This means:

• Buyers have more choices than they've had in years, but competition remains fierce for well-priced homes
• Sellers can't be complacent about pricing—the market is becoming more discerning
• Multiple offers are still common for homes under $400,000 and luxury properties over $750,000

The Affordability Crisis Deepens

Perhaps the most concerning trend is that two-thirds of Spokane County residents cannot afford a median-priced home. With median household income growth lagging behind home price appreciation, this affordability gap continues to widen.

Interestingly, we're seeing significant price increases in smaller homes—one-bedroom properties are up over 10% year-over-year—as buyers compete for the most affordable options. Meanwhile, larger homes have seen more modest increases, suggesting demand is concentrating in the entry-level and move-up segments.

Market Timing: What This Means for 2025

For Sellers: The window for premium pricing is narrowing. Homes priced accurately for current conditions continue to sell quickly (15-24 days on average), but overpriced properties are experiencing longer market times. High mortgage rates are also prompting more sellers to offer concessions like closing cost assistance.

For Buyers: While inventory increases provide more options, affordability remains the primary challenge. The combination of elevated home prices and high mortgage rates means many buyers are adjusting their expectations or delaying purchases.

Looking Ahead: Fall 2025 Predictions

Based on current trends, I expect continued inventory growth through the fall, which should provide some relief for buyers. However, Spokane's fundamentals remain strong:

• Population growth continues to drive housing demand
• Limited land for development constrains supply
• The local economy remains diversified and stable
• Spokane remains affordable relative to Seattle and Portland

I anticipate price growth will moderate to 2-4% annually—a healthier pace that allows income growth to catch up somewhat. The key will be whether mortgage rates stabilize or continue their upward trajectory.