Spokane, WA Real Estate: About Current Market Conditions

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

At the end of 2021 the closed sales were down 52 sales (7.2%) from 20120. Our average closed sales price for 2021 comes in at $400,612 from $321,311 in 2020. Inventory continues to be at record lows. We have seen this throughout 2021. At the end of 2021 inventory was 224 properties on the market in all of Spokane county. This was less than a 2 week supply. More cash buyers, some with family financing found that cash can get the offer but not necessarily with a discount as in previous years and more likely to still need to be the highest bid. Multiple offers were very common in every area during 2021. However at the end of the year it was more often seen on flipped homes. New flooring and cablinets can cover up other issues with electrical and in the crawl space so a home inspection is even more importat with these homes. Sellers have no need to contribute to Buyers closing costs and adding it onto the price was not working as offer prices are well over list already. Early in the year cash over appraisal was a thing. It is critical for Buyers have a strategy to increase the likelihood of their offer being successful. Properties on the South Hill and the updated properties create the most bidding frenzies within a couple of days of being on the market even during heavy snow and icy driving conditions.. Properties that are not in fabulous condition are attracting rehab buyers and investor buyers. To allay fears of a low appraisal many Buyers are using a form which states how much over a low appraisal the Buyer will agree to pay. The highest number here can beat out anything except an all cash deal. Escalation addendums are common although not all sellers will accept them. With the new contract changes in March 2021( a mere 40 in total) Buyers will have an advantage if their lender will put their file through underwriting prior to making an offer + have funds to pay their own closing costs + the most agressivre Buyers have funds to pay someting over a low appraisal to both protect their earnest money and to 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.

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 or 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. There may or may not be a basements or dissimilar quality finishes so the number you come up with is fairly meaningless unless you are only comparing a single style of home in the same development. 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?