The Spokane real estate market continues to thrive, as shown in its current market condition. As of 2024, Spokane is a seller’s market, with home prices increasing and properties selling quickly. Low inventory primarily drives this dynamic, which fuels buyer competition and prevents prices from falling.
Understanding the Spokane Real Estate Market
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In April 2024, the Spokane Association of Realtors reported a remarkable surge in net closed volume, exceeding $58 million, with 821 homes sold.
Despite some forecasts predicting a decline, the average home value in Spokane has remained steady, showing a slight increase of 1.6% over the past year, reaching $397,068, according to Norada Real Estate Investments.
Spokane, WA’s median price for homes for sale is $395,243, or approximately $202 per square foot.
Below is the median sold price of homes in Spokane, WA, depending on bedroom count:
| Bedroom Count | Median Sold Price (2023) | Median Sold Price (2023) |
|---|---|---|
| 1 Bedroom | $226,500 | $200,000 |
| 2 Bedroom | $275,000 | $269,700 |
| 3 Bedroom | $350,000 | $368,800 |
| 4 Bedroom | $419,500 | $434,300 |
| 5+ Bedroom | $559,100 | $561,500 |
The median sold price of one-bedroom homes decreased by 11.7% compared to the previous year, while the median sold price of two-bedroom homes slightly reduced by 1.9%.
On the other hand, three-bedroom homes experienced an increase of 5.4%, four-bedroom homes went up by 3.5%, and homes with five or more bedrooms saw a modest increase of 0.4%.
Homes for sale in Spokane, WA, typically go to pending status in approximately 8 days, and the median sale-to-list ratio is 1.00, indicating that homes are often sold at or above the asking price.
Setting Your Budget
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Before you fall in love with charming Victorian houses or sleek modern condos and apartments in Spokane, WA, and jump into the buying process, you must organize your finances first- establish your budget, including your down payment.
Understanding your financial boundaries and avoiding overextension is crucial. Knowing what you can afford will assist you in narrowing your property search effectively.
Start by assessing your income, expenses, and savings. Figure out how much you can spend on a home without overextending yourself.
Remember that homeownership involves many aspects. It includes more than just the mortgage payment. You’ll also need to consider insurance, property taxes, closing costs, maintenance, and potential HOA fees.
Financing Options
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When making an offer on a home in Spokane, WA, it’s important to understand the various loan programs available. Understanding your options can help you decide when buying a home. Here’s a brief guide to the most common financing options in the area:
1. Conventional Loans
Conventional Loans do not involve government guarantees like the FHA or VA but follow the guidelines established by Fannie Mae and Freddie Mac.
Typically, borrowers with solid credit and a substantial down payment get conventional loans.
They require a down payment ranging from 5% to 20%, with the potential to finance up to 97% of the home’s value.
Conventional loans come in two major forms: conforming and non-conforming loans. Conforming loans comply with the loan limits set by the Federal Housing Finance Agency (FHFA).
For 2023, the limit in Spokane for a single-family home is $766,550, with higher limits for multi-family properties. Non-conforming loans exceed these limits and often apply to luxury properties or high-cost areas.
2. FHA Loans
FHA loans are jointly underwritten by the Federal Housing Administration to help those who may not be able to secure conventional loans. They require less initial payment and provide relatively easier conditions for obtaining a credit score.
A minimum credit score 580 in Spokane is needed for a 3.5% down payment. If your score is between 500 and 579, a 10% down payment is required. FHA loans are also available for first-time homebuyers and come with specific limits of $472,030 for single-family homes and up to $907,900 for fourplexes.
3. VA Loans
These loans are offered to military personnel, retired military, and other eligible juniors and dependents. They have several advantages, including no down payment, reasonable interest rates, and the absence of private mortgage insurance.
The Department of Veterans Affairs offers a guarantee for a portion of the loan, which enables lenders to offer better terms to borrowers.
While there’s no maximum dollar amount for VA loans, local rules and additional requirements might apply.
4. USDA Loans
USDA loans are another option for buying a home in Spokane, particularly for those in eligible rural areas. The USDA offers several programs, including Single Family Housing Direct Home Loans, which assist low, and very-low-income applicants but have recently seen reduced funding.
The USDA Rural Development Guaranteed Home Loans require no down payment and allow closing costs to be financed into the loan. Eligibility depends on income and property location within approved rural areas.
5. Jumbo Loans
Jumbo Loans are for those homes that do not fall within the standard loan limits regulated by Fannie Mae and Freddie Mac. In Spokane, any loan over $726,200 is considered a jumbo loan.
Because more money is at stake, jumbo loans are generally more rigid and carry higher interest rates. Prospective buyers should consult a Jumbo loan specialist to understand the terms and requirements.
Choosing the Right Neighborhood
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Spokane, Washington neighborhoods boast each of their unique charm and lifestyle.
When selecting the right neighborhood, consider safety, proximity to amenities, and the overall community vibe.
Take the time to explore different areas and think about what is most important to you and the place that will fit the lifestyle you want.
Here are some neighborhoods you would want to consider when looking for a neighborhood.
Liberty Lake, a suburb near Spokane Valley, Washington, is a quiet, clean, and family-friendly neighborhood. It’s an excellent place to raise a family and an ideal spot for retirement.
Known for its lakeside charm, Liberty Lake offers a retreat from the city’s hustle and bustle while fostering a close-knit community vibe.
The area is a haven for outdoor enthusiasts with its Liberty Lake Golf Course, Liberty Lake Regional Park, and numerous local parks. Its vibrant downtown provides plenty of dining and shopping options, perfect for those seeking retail activities after a day of outdoor recreation. Liberty Lake’s primary industries include healthcare and manufacturing.
Overall, the cost of living in Liberty Lake is slightly above average, with a cost of living score of 103.1. This score indicates that the overall cost of necessities such as housing, food, childcare, transportation, and healthcare is 3.1% higher than the U.S. average and 15.4% higher than the Washington state average.
South Hill is a great neighborhood if you want a perfect blend of historic charm and tree-lined streets.
It is known for its low housing density and mix of residential and commercial areas. South Hill offers a range of houses for sale in Spokane, Washington, from single-family homes to apartments, catering to different lifestyles and budgets.
The area near 29th Avenue features plenty of ranch and split-level ranch homes, while the area closer to 14th Avenue becomes more commercial. Home prices here cost an average of around $550,000.
The older Rockwood section within South Hill showcases basalt monuments and the Blvd Gateway landmark. This section boasts diverse architectural styles, including mansions, cottages, Tudors, and Victorians.
Most homes open up to the street, with most streets following a sensible grid pattern. Less dense areas feature longer winding drives and ornamental lawns. While the sidewalks are not detached, numerous street trees offer shade for a long stroll.
North Spokane is renowned for its unique history and residential and outdoor adventure. The area features a mix of post-war houses, suburban homes from the 1960s to the early 1980s, Craftsman-style homes, and newer residential developments.
Homes for sale in North Spokane, WA, tend to be more costly, especially those offering breathtaking waterfront views.
Whatever season, residents can find outdoor activities to do alone or with families. One of the standout attractions in North Spokane is Greenbluff, a popular destination in the fall where families can enjoy various seasonal activities.
Another highlight is Mount Spokane, a versatile outdoor spot where you can mountain bike in the summer and ski and tube in the winter.
The neighborhood also offers several large retail districts and a range of amenities, including a significant recreation and sports complex, Spokane Civic Theatre, and Spokane Arena.
For entertainment and dining, North Spokane boasts notable establishments such as Ferguson’s Cafe, the Garland Theater, the Blue Door Theater, and various malls.
Additionally, the area features numerous local shops, pubs, and restaurants, contributing to its vibrant community atmosphere.
Finding the Perfect Home
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Finding the perfect home among several homes for sale in Spokane, WA, involves careful consideration and research.
After assessing your budget, identify your key priorities, such as size and amenities. Consider the home’s proximity to work, schools, and recreational facilities, as well as the area’s overall ambiance.
It’s also wise to evaluate the home’s condition, including potential renovation needs and long-term value.
Tour various properties and communities and talk to realtors and professionals who can help you purchase a residential home.
With thorough research and a clear understanding of your needs, you can find a home in Spokane that suits your desires and requirements perfectly.
Home Inspection and Appraisal
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Evaluating property values is crucial for buyers and sellers when navigating home sales in Spokane, WA.
Several methods are used to identify how the property compares to similar homes. Additionally, public records and neighborhood statistics provide valuable information.
A professional home appraisal can provide an objective view of a property’s market value, which is essential when refinancing. Appraisers determine market value by determining property conditions, recent sales, and market trends.
Speaking to local agents can also help set relevant expectations concerning particular neighborhoods and their price ranges.
Accurate appraisals help set realistic price expectations and ensure a smooth transaction. A proper examination can uncover problems that may later cause much more expenses.
Negotiate a pre-offer inspection to identify potential problems before committing. If a pre-offer inspection is not possible, include an inspection contingency in your offer to ensure you are shielded from any issues.
Making an Offer
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Once you’ve identified your ideal home, it’s time to make a strategic offer. Ask your real estate agent for assistance in developing a fair proposal by evaluating the prices of similar homes on the market.
Your offer may vary based on the listing price and the current market conditions, whether a buyer’s or seller’s market. It could be below, at, or above the asking price.
If you receive a counteroffer, your realtor will assist in negotiating to reach a mutually agreeable deal. When an agreement is reached, the property will enter escrow.
Before creating your offer, ensure you have been pre-qualified or, even better, pre-approved by a lender.
Getting pre-approved is a powerful negotiation tool. It proves to the seller that you have the means to purchase the home. Once financially prepared, you can confidently prepare your offer and move forward in the home-buying process.
Negotiating the Purchase
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Negotiating the purchase of a home is a crucial skill that can significantly impact the final terms of your deal.
Again, it is essential to thoroughly research comparable property for sale in the Spokane County, WA, area to gauge the fair market value. This knowledge is helpful throughout the negotiations and enables you to make the best decisions.
When creating your initial offer, don’t hesitate to propose a lower price if you believe the property is overpriced or requires substantial repairs.
Support your offer with well-researched facts and be ready for a negotiation process involving multiple offers and counteroffers. Besides the price, you may also talk about contingencies, requests for repair, costs of closing, and even the appliances and furniture.
For instance, you might negotiate for the seller to cover certain repair costs or reduce the closing costs.
Haggling or bargaining is all about finding a compromise that is favorable to both the buyer and the seller. Keep communication open and flexible, and work closely with your agent to navigate this process effectively.
Understanding Closing Costs
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Congratulations on having your offer accepted! However, there’s still quite a bit to do before you can get the key to your home.
It is important to note that the time it takes to close the deal depends on factors ranging between a few weeks and several months at most.
During this time, you’ll need to complete several things, such as finalizing your mortgage, securing homeowners insurance, and addressing any issues arising from the inspection.
Your real estate agent or attorney can assist you with these steps. The last steps include closing the deal and signing numerous papers, which will make you the owner of the property. Although this process can be overwhelming, it’s also an exciting milestone.
Furthermore, closing costs are one of the crucial phases, encompassing the various fees required to finalize a home purchase. For buyers in Spokane, WA, these costs can range from 2% to 5% of the home’s purchase price. These costs are often unpredictable as they vary with each transaction.
While careful shopping can minimize some fees, others are fixed and unavoidable. Typically, closing costs include an application fee, appraisal fee, escrow fee, credit report fee, homeowner’s insurance, title insurance, loan discount points, origination fee, recording fee, title search fee, transfer taxes, and underwriting fee. These charges cover a broad spectrum of services, from administrative processing to legal protection.
In some cases, buyers who struggle with these costs might negotiate for sellers to cover them. However, this is less common in a competitive seller’s market. Buyers must discuss this possibility with their real estate professionals early in house-hunting.
Note: This image may include elements generated by artificial intelligence (AI).
Wrap Up
Buying a home is both a significant financial commitment and an emotional journey. It’s normal to feel a mix of excitement and anxiety.
However, with the proper knowledge, a skilled real estate professional, and a clear understanding of your budget and needs, you’ll be well-prepared to navigate the Spokane real estate market and find a home that perfectly fits your lifestyle.
With rising home prices and fast home sales, Spokane’s current seller’s market requires buyers to act decisively. So, with a good plan, research, and advice, you can make the best decisions and get the home you’ve always wanted.
Ready to take the next step in your home-buying journey? Do you have more questions and need assistance navigating the home-buying process in Spokane, WA? Contact us today, and we will gladly answer your inquiries as you search for and turn your dream of homeownership in Spokane into a reality!
Call us at (509) 230-5363 or via sweethomepnw@gmail.com.
Frequently Asked Questions
What is the average cost of a home in Spokane, WA?
As of 2024, the average cost of a home in Spokane, WA, is approximately $397,068. The prices vary equally depending on the area and whether the home is a condominium, house, or apartment.
How do I find a reliable home inspector in Spokane?
To find a reliable home inspector in Spokane, ask your real estate agent, friends, or family for recommendations. It will also be helpful to check online reviews and ratings about their work on Yelp or Google.
Ensure the inspector’s credentials, experience, and whether they are licensed and insured. You can also request a sample report to gauge the thoroughness of their inspections.
What are the most popular neighborhoods in Spokane?
Spokane offers several popular neighborhoods, each with its unique appeal. Some of the popular neighborhoods in Spokane are the following:
- Liberty Lake is known for its lakeside charm and family-friendly atmosphere, with parks, golf courses, and a close-knit community.
- South Hill offers a mix of historic charm and modern amenities, with various housing options, tree-lined streets, and nearby commercial areas.
- North Spokane is renowned for its outdoor activities, including Greenbluff and Mount Spokane, and its vibrant community with shopping, dining, and recreational facilities.
Can I negotiate closing costs with the seller?
Yes, it is often possible to negotiate closing costs with the seller. This may be more challenging in a competitive seller’s market, but it’s worth discussing with your real estate agent to find the balance that works for you and the seller.
You can negotiate with the seller to have them pay part of the closing costs or integrate them into the overall price of the house.
