If you're looking for a home in the Spokane area right now, you could be paying nearly 30% more than you would have paid in comparison to prices last year. Spokane County’s median home price soared to another record-breaking high in June, hitting $380,000.
Prices are climbing at the fastest pace in more than three decades across the coutnry, and homes are frequently selling above their list price, according to the National Association of Realtors.
The median closing price last month was 28.8% greater than the $295,000 median in June 2020, according to the Spokane Association of Realtors. (Source) Spokane is no different from the trend that has been recurring across the country as homebuyer demand continues to outpace the supply of homes on the market.
A bright spot is that housing inventory slightly increased last month in the county. Spokane County had 284 homes available on the market last month. Going by current data, this figure represents a 12-day supply. That means it would take 12 days to sell all available properties in the county. By comparison, the county had an inventory of 728 homes for sale in June 2020. The county had 224 properties available on the market in May.
New listings are holding steady at the exact same figures with 961 listings in June 2020 and 961 listings in 2021.
A few months ago in late March The National Association of Home Builders (NAHB) has released its 2021 Priced-Out Estimates report, showing how higher home prices and rising interest rates affect people’s ability to purchase new homes. In Washington State, the median home price is $522,023 and requires a minimum income of $112,295 just to qualify for a mortgage. With that stat alone, more than 72% of Washington’s approximate 3 million households are priced out from qualifying. (Source)
Economic Outlook For Buyers
Unless construction picks up, the near-term outlook for prices isn't promising. Economists are predicting that prices will remain elevated through the rest of the year and into 2022 because millennials will keep demand high — and they see the construction industry having a hard time keeping up.
If you want a new home, it is likely wise to wait to buy until the market cools. If you cannot wait, first-time home buyers may have an advantage if they are not depending on the sale of a previous home to buy the new one and have flexibility on when they can move in. One option is to rent the home back to the seller while they look for their new home. With the market being as hot as it is right now and so many buyers paying more than list price, any advantage you have as a buyer can make or break the purchase of a home.