Spokane, WA Real Estate: About Current Market Conditions

offered by Jeannette Karis RE/MAX of Spokane "The Real Estate Broker with the English accent!"

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At the end of 2017 the closed sales totaled the 2nd highest in the past 30+ years. The total closed sales reported in the Spokane MLS for single family homes on less than 1 acres & condominiums was 8.137 sales. Total sales are up7% over 2016 when 7.601 closed sales were reported Lower inventory made for a very tight market with multiple offers for homes in great updated condition in the most popular neighborhoods. The average sales price for the year $228,732 up 7.8% over 2016 so buyers who delay buying will end up paymore for the same home or buying less of a home. New construction is an option for buyers who are comfortable with a non-refundable deposit to the builder, a 6 month wait to complette construction and can comply with a non-contingent purchase. New construction sales were down 7.1%, 790 v 850 in 2016.

In 2018 more cash buyers, some with family financing found that cash can get the offer but not necessarily with a discount as in previous years. Multiple offers were very common in the March-June period. This made it hard for buyers needing seller to contribute to their closing costs as adding it onto the price was not working and sellers were not selecting those offers. Market is slowing in October and expect this to continue through the end of the year. AN opportunity for buyers to get closing costs help as homes are staying on hte market a little longer. As always the updated ones do not last a week before an offer is accepted.

Properties that are not in fabulous condition are still struggling to attract buyers. Even with low inventory most buyers do not want to do any fix up work. It is still a beauty contest. Buyers in all price ranges are wanting to negotiate their closing costs into the contract but many seller with more than 1 offer will select the one not asking for buyers cost rather than going with the highest price when the concern will be will it appraise. Buyers who find a lender who will put their file through underwriting prior to making an offer and have funds if needed to pay their own closing costs have a greater chance of success.

Very few sellers are in a short sale position and are unable to pay off their lender when the home sells. Fewer bank owned properties are coming on the market.

Common home designs in this area are shown above


Lender owned properties are continuing to enter the market and are attracting mainly investor buyers. Many of the lender owned properties will need work and not every buyer has the extra cash this requires. There are also possible additional closing costs to the buyer including paying the last water bill, seller & buyer title insurance, outstanding HOA fees - it varies from lender to lender.

The housing stock in the Spokane area includes properties built in 1890 right through to the present day. The great majority of these have basements although they may range from the rock basement, root cellar to the full, finished, daylight walk-out basement and everything in between. Construction is mainly wood frame and the large majority of resale homes are sided with wood or vinyl. Brick and stone are used more for accents due to costs, although a number of homes in the 50's were built entirely of brick. Homes built since the 2000 have new technology products, Green homes, Low Energy homes and Smart homes.

With hydro electric power, utility bills may be lower than those in other states. However even with the recent increases in the price of gas, electric and oil, gas is still a popular choice for a heat source in homes but not usual as a cooking source or for the use of gas dryers in a resale home. Central air conditioning is available in a great many homes. Central vacuum is more common in the upper end properties.

In this area the sf figure most commonly quoted is the tax assessed sf, the sf of the foundation less the garage. So to figure out the total living space this figure may be multiplied by 1.5, 2 or 3 depending on the style of the home and whether or not additional levels have finished living space.The total sf figure now available is not necessarily all finished. Price per sf is not a number commonly used in the Spokane market outside of new construction as we have such a diverse mix of construction styles and age of homes both with and without basements that the number you come up with is fairly meaningless unless you are only comparing a single style of home. Even then the variation is more of a neighborhood value reference. Many websites generate this number but it can be frustrating for buyers. The best explanation I can come up with is to compare it to an average temperature for the US at any given moment, it is a number but what does it mean?

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Jeannette Karis, ABR,CRS,ePro,GRI,SFR,SRES,VAMRES,MRP - "The Real Estate Broker with the English accent!"
call/text 509-994-8246 // licensed in WA state
RE/MAX of Spokane, 12810 E Nora Suite E, Spokane WA 99216, (each office independently owned & operated)