Things Are Just Different in Spokane

With what used to be considered normal, the effects of COVID-19 have thrown “normal” on the ground, stepped on it, crumpled it up, and tossed it away like trash. Most people on this planet have had their lives impacted in many ways, some more devastating than others. And to all affected, my heart goes out to you and I sincerely wish you strength, perseverance, and that you come through this better than before.

OK, now to the basis of this blog, THINGS ARE JUST DIFFERENT IN SPOKANE, WA, USA, up in the Pacific Northwest (or simply PNW if you know).  I’ve lived here since 2002 and have seen tremendous growth and positive changes, which does affect the real estate market.  Yes, in 2008 we suffered the R.E. (real estate) slump like everywhere else and the slow recovery that followed.  However, given a confluence of global changes, business changes, and societal changes – Spokane has become one of the hottest R.E. markets in the country and many of us in the business foresee this continuing.  Feel free to Google why Spokane has become so HOT, but here’s a few examples: the local medical field, Fairchild AFB, Amazon, crazy good quality of life, lack of congestion, etc.

So, what is the real point of this blog?  Seriously, up to this point my mind and fingers are rambling.  OK, here it is: WHAT YOU HEAR ABOUT THE R.E. MARKET IN GENERAL DOES NOT APPLY TO SPOKANE AT THIS TIME!  As a Realtor, I have many lenders send me their “Housing Updates” and if they are not talking about Spokane, I honestly scan over and delete, because these do not tell our local story or situation for Buyers, more than Sellers, in Spokane. 

Nationally, we hear comments like “…home sales predicted to suffer the biggest year-over-year decline in 12 years.”  In Spokane, it is true that there are fewer homes for sale, but the percentage of homes sold compared to for sale are increasing, average $ per sq. ft is increasing, while days on market and months of inventory are going to record levels (lack of inventory = Sellers’ Market). The following are examples from Trendgraphix, Inc. that shows home sales in Spokane County for the last two available months compared to the prior year (Trendgraphix, Inc. compiles data from multiple MLS on sold homes).  Keep in mind, these are averages and some areas are seeing price increased of 12-15+% YOY and even fewer days on market):

MONTH        For Sale   Sold    Avg $ /SqFt    Avg Days on Market   Months Inventory

Apr 2019         1169       597           $133                         39                          2.0                        

Apr 2020         633       537           $146                         18                           1.2

May 2019        1364       757           $135                         30                          1.8

May 2020         675       550          $147                          17                           1.2

All of this data indicates what Spokane Realtors are seeing: homes priced correctly and marketed should go quickly and, in many cases, with multiple offers that drive the price up. We are also seeing homes go so quickly that when a Buyer asks to see a home tomorrow or in a few days, many times by the time we walk into the home it has gone under contract – which happened to me and Buyers yesterday. So, if you are ready and want to buy now, you absolutely need to be proactive and not take your time.  For those that have time, I suggest waiting a few months and I am happy to explain this strategy with anyone interested – just reach out and we can talk.

To boil the above down to a few key points, the local reality is:

1. If you only know what the national R.E. narrative is, you are not understanding Spokane R.E.
2. If you listen to the national narrative, you will think you can wait until Spokane slumps and prices drop.  Trust me, you will pay more for the same house – if you can buy it, next year.
3. Over the past few years, inventory in Spokane has dropped well below a balanced market, and that creates a Sellers’ Market. Most experts think balanced is 4-6 months of inventory, and we are at less than 1 ¼ months and have been under 2 months for a long time.
4. The rental market in Spokane is ~96-98% occupied and there are more people coming every month thanks to Amazon, increasing enrollments and all local universities, remote employees leaving higher cost of living markets, people escaping higher density cities to social distance, etc.

Everyone has their own timeline, and I get it.  But with the wonderful quality of life we enjoy in the PNW and especially the Spokane area, you need to stop thinking the way the national R.E. narrative paints the market if you are serious about buying in or near Spokane.  If you have questions, reach out. I am here to share knowledge, explain it all to you, and serve your needs.