Spokane County, WA presents a seller's market landscape as of March 2024. This implies that the demand for homes exceeds the available inventory, providing sellers with advantageous conditions. With more prospective buyers than homes on the market, sellers can often negotiate favorable terms and achieve swift transactions.
In March 2024, the median listing home price in Spokane County, WA stood at $485,000, reflecting a notable 3.2% year-over-year increase. This upward trend underscores the sustained demand for residential properties in the region. Additionally, the median listing home price per square foot was $232, indicating the value proposition offered by properties in the area.
According to Realtor.com, the sale-to-list price ratio in Spokane County, WA reached 100% in March 2024, indicating that homes were typically sold for the asking price. This parity between listing and selling prices underscores the balanced dynamics between buyers and sellers in the market.
One of the key metrics defining market activity is the median days on market. In Spokane County, WA, homes typically sell after 31 days on the market, indicating a relatively brisk pace of transactions. This figure represents the average duration from listing to sale completion, offering insights into the efficiency of the local real estate market.
The housing market in Spokane County, WA is poised for continued growth and resilience. With favorable economic conditions, attractive housing prices, and a desirable quality of life, the region remains an enticing destination for homebuyers and investors alike. Looking ahead, experts anticipate that the demand for residential properties in Spokane County, WA will persist, driven by factors such as population growth, job opportunities, and lifestyle preferences.
Spokane Housing Market Report – March 2024
According to the Spokane Association of Realtors, in March 2024, the net closed volume for real estate transactions in Spokane reached an impressive $260,989,647. This figure signifies a notable increase of $40,778,911 compared to the previous month. The market saw 1,308 listings processed, with 602 closed sales. These statistics indicate a substantial rise in both listings and sales, with an increase of 238 listings and 135 closed sales compared to the previous month.
Furthermore, when compared to the same period last year, the net closed volume witnessed a commendable increase of $4,040,138. However, there was a slight decrease in the number of listings by 11, and closed sales by 34 compared to the previous year.
Breaking down the sales volume, the mandatory sales volume accounted for $239,126,398, while the non-mandatory sales volume totaled $21,863,249. Additionally, pending sales, calculated based on the list price, amounted to an impressive $440,038,231. With 975 pending sales processed, the market is poised for further growth and activity.
The surge in net closed volume and the increase in both listings and closed sales signify a robust real estate market in Spokane. Several factors contribute to this upward trend, including economic growth, population influx, and low mortgage rates.
Spokane's economic growth has been steady, attracting businesses and job seekers alike. This has led to an increased demand for housing, resulting in a competitive market environment.
Moreover, Spokane's affordability compared to other West Coast cities has made it an attractive destination for homebuyers. With relatively lower housing prices and a high quality of life, more individuals and families are choosing Spokane as their preferred residential location.
Spokane Housing Market Forecast for 2024 and 2025
Contrary to a decline in home prices, the Spokane housing market has exhibited a trend of modest appreciation over recent years. While there may be fluctuations in pricing influenced by various factors such as economic conditions and seasonal trends, a significant downward trend in home prices is not currently observed in the Spokane market.
As with any market, the possibility of a housing market crash is always a concern for both buyers and sellers. However, the Spokane housing market currently shows no significant indications of an imminent crash. Factors such as steady demand, limited inventory, and a stable economic environment contribute to the market's resilience against abrupt downturns. While unforeseen events can impact market conditions, the overall outlook for the Spokane housing market remains positive.
According to Zillow, the average home value in Spokane stands at $386,037, reflecting a modest increase of 0.9% over the past year. Homes in this market typically go pending within an efficient timeframe of around 17 days, indicating a brisk pace of transactions. Delving deeper into the metrics, as of March 31, 2024, Spokane boasted a for sale inventory of 607 properties, with 240 new listings entering the market during the same period.
The median sale price as of February 29, 2024, stood at $339,666, while the median list price as of March 31, 2024, was slightly higher at $418,967. Notably, the median sale to list ratio as of February 29, 2024, was recorded at 0.998, indicating a close alignment between listing and sale prices.
Further dissecting the market dynamics, approximately 29.5% of sales occurred over list price, while 47.5% transacted under list price during the same period.
Understanding the Spokane MSA Housing Market Forecast
The Spokane Metropolitan Statistical Area (MSA) encompasses a significant portion of eastern Washington, serving as a pivotal hub for real estate activity within the state. Comprising Spokane County as its primary constituent, alongside neighboring regions, this MSA plays a pivotal role in defining the broader housing landscape of Washington State.
With a forecast projecting gradual yet steady growth, the Spokane MSA anticipates a rise in housing values over the coming months. Based on data extrapolated from Zillow, the forecast predicts a 0.2% increase by April 30, 2024, followed by a more substantial growth of 0.6% by June 30, 2024, and a notable surge of 2.6% by March 31, 2025.
This forecast underscores the resilience and potential for expansion within the Spokane housing market, portraying a promising outlook for prospective buyers and sellers alike.
The Spokane MSA, classified as a Metropolitan Statistical Area, encompasses an expansive geographical region within Washington State, primarily centered around Spokane County. Comprising a diverse mix of urban and suburban landscapes, this MSA serves as a crucial economic and cultural center for the eastern portion of the state.
With a population exceeding half a million residents, the Spokane MSA boasts a robust housing market characterized by a blend of single-family residences, condominiums, and apartment complexes. This market's size and scope extend beyond mere numerical figures, encapsulating a vibrant community fabric driven by economic prosperity and residential diversity.
Spokane Real Estate Investment: Should You Invest in Spokane?
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.
In conclusion, 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.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Spokane.
References:
- https://www.spokanerealtor.com/market-snapshot
- https://www.spokanerealtor.com/mls-weekly-news-information
- https://www.zillow.com/Spokane-wa/home-values
- https://www.neighborhoodscout.com/wa/spokane/real-estate
- https://www.realtor.com/realestateandhomes-search/Spokane_WA/overview