Spokane, WA Real Estate: About Current Market Conditions

offered by Jeannette Karis "The REALTORŪ with the English accent!"

The housing market in Spokane continues to enjoy an increase in value during 10 year cycles. The total sales for 2009 were 4,666 down 5% from 2008 when 4,910 sales were reported. Halfway through 2009 closed sales were down nearly 23%, the second half picked up significantly. The year end average sale was down 9% from 2008 and the median price was down 8%. These drops were much smaller than other parts of WA state and other parts of the country. I believe this is reflecting more of the sales involving lower priced homes which were by the First Time Homebuyers tax credit. The number of new listing coming on the market in 2010 is down around 23% compared to 2009. The market time on homes has increased enough to cause sellers to become more negotiable and willing to assist with buyer loan costs. Interest rates are still at record lows. Now properties that are not main stream are struggling to attract buyers. Condition and marketability are now even more important. More sellers in a short sale position are entering the market together with lender owned properties. Sellers in a short sale situation can choose to accept numerous offers subject to lender approval and then the lender will decide which to proceed with. This process can take up to 6 months or more to complete. A frustrating position for buyers and sellers both.

Lender owned housing is also becoming more available. Buyers now have more choices but may still be presenting competing offers on well priced properties. Many of the lender owned properties will need work and may be more attractive to invbesetors. New construction sales are steady at the new normal levels with some incentives being offered. Not many new construction models to view as many builders move back to building after contract in agreed. Builders are still quoting around 3-6 months to complete from bare land.

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 siding. 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 90's have new technology products such as the LPI truss system.

With hydro electric power utility bills were 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.

Our market activity sales data tell us that Spokane is a stable community with the average price of around $177,500. Spokane has been spared the deep home value reductions of the rest of the country and is near the low point of any price decreases.(Source PMIgroup.com) This average home would have around 1100 square feet on the main floor, 3 to 4 bedrooms, with a 2-car garage and more finished living space either on another level or in the basement.

In this area the sf figure most commonly qouted 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