Spokane Real Estate Market amidst Covid-19
The Spokane housing market has COVID-19. I’m not sure whether the real estate market in Spokane County actually caught the Corona Virus but it is definitely exhibiting some strange symptoms that can’t be explained any other ways.
Home prices in Spokane are setting records. The mean average and the median average in October both increased over 20% compared to October of 2019. They both hit all-time highs.
October home sales in Spokane County are down 3% from the same month last year but with a much higher demand, this number is purely inventory driven. Spokane housing inventory is desperately low with about a 2 week inventory of single family homes.
*The above statistics came from the Spokane MLS considering single family homes on less than one acre, including condominiums.
**Housing inventory expressed as time is a hypothetical number taking the current rate of sales with no new inventory coming onto the market.
New construction is fallowing a similar trend. With year to date closed sales of newly constructed homes at 424 through October, they are up 14% compared to the same period last year. Basically, they’re selling them as fast as they can build them and they’re building them as fast as they can.
Who knows? Just like the rest of the pandemic, this is something that we haven’t really seen; especially here in Spokane.
Is the bubble going to pop?
What bubble? In the past when prices have had dramatic increases, more and more sellers want to jump on the bandwagon and sell their homes for the newly inflated prices. The inventory begins to build with a lot of overpriced homes. That is the bubble and at this time there is no bubble to pop.
Will this market continue?
No, not forever. Interest rates are staying low for now. Sellers seem reluctant to put their homes on the market; likely due to the pandemic. These two facts seem to be perpetuating this feeding frenzy of desperate buyers. So, at least for now this is the market we have. It is not a healthy housing market and it won’t be able to sustain itself forever.
It is nearly impossible to predict what is going to happen with any kind of accuracy. Just like the rest of the economy though, there will likely be fallout.
If you are someone who normally reads this page, you know that I usually have a much more positive optimistic spin on the Spokane real estate market. If you would like to have an honest, candid conversation about the Spokane housing market and how it could impact you and your goals, give me a call.