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Are you thinking about buying a home in Spokane, Washington in 2021? If so, keep reading. We have compiled a variety of statistics and trends to help you get a sense of where the Spokane real estate market is now – and where it might be going.
In This Article:
- The Median Home Price Skyrocketed in 2020
- Spokane Housing Market Forecasts Predict Additional Price Gains
- Real Estate Inventory Remains Tight in the Spokane Area
- Mortgage Rates Are Expected to Remain Low the Coming Months
- We Can Help You Prepare Financially For Your Home Buying Process
Seattle may be known as the hottest housing market in Washington State, but while it is certainly a desirable place to live, there are several other nearby markets that offer amazing opportunities at a fraction of the price, and that includes Spokane.
Here are five things you should know about buying a home in Spokane, with an emphasis on mortgage rate trends and housing market conditions.
1. The Median Home Price Skyrocketed in 2020
According to recent reports from the Spokane Association of Realtors, the median home price in and around the city rose to $298,760 by early 2021, and the trend continues.
Despite this trend, Spokane remains an affordable location for home buyers, especially when compared to most cities in the western part of the state. The median home value in Seattle, for instance, has reached around $804,500.
Home prices in Spokane have risen by 17.8% over the last year or so, but they are still relatively affordable for home buyers. In fact, the city has one of the highest affordability rankings in the state. This is good news for those who are thinking of buying a home in Spokane in 2021.
Related: Average down payment in Spokane
2. Spokane Housing Market Forecasts Predict Additional Price Gains
According to the housing analysts and economists at Zillow, house prices in the area could rise even more over the next 12 months. This forecast for the Spokane housing market was issued in February 2021.
Granted, this is just a forecast. So you shouldn’t get too wrapped up in the numbers. The point is that economists expect home prices in Spokane to continue rising (to some degree) through 2021. This is not surprising, given the current inventory situation in the city. Which brings us to item #3…
3. Real Estate Inventory Remains Tight in the Spokane Area
According to the local Realtors association, Spokane had about a 1.2-month supply of homes for sale during the winter of 2021. That is well below the six months of supply that’s considered to be a “balance” real estate market. So it seems that Spokane is still very much a sellers’ market, according to local real estate professionals.
This is a trend we are seeing across the state of Washington, and it will affect those who are planning to buy a home in Spokane in 2021. It’s common for homes in desirable areas to elicit multiple offers within days of being listed for sale – and sometimes within the very first day.
As a result of these housing market trends, those planning to buy a home in Spokane in 2021 should be prepared for stiff competition. Even with additional construction in the area, the supply-and-demand situation will likely favor sellers for the foreseeable future.
4. Mortgage Rates Are Expected to Remain Low Over the Coming Months
On February 10, Freddie Mac reported that the average rate for a 30-year fixed home loan was 2.73%. Rates have been fairly stable over the last few months and are actually lower now (in February 2021) than they were only a few months earlier. It’s forecasted that rates will continue to remain rather low throughout the duration of the year.
In 2021, interest rates are expected to remain relatively stable, and are not expected to venture too far over or under the 3% mark. That’s good news for anyone who is looking to buy a home in Spokane in 2021, as it will make homebuying a more affordable process.
Housing and mortgage rate forecasts are the equivalent of an educated guess. There’s always a chance they could prove inaccurate over time. But the general consensus seems to be that mortgage rates and home prices in Spokane will remain stable over the months ahead. And this would make a strong case for buying a home in 2021.
5. We Can Help You Prepare Financially For Your Home Buying Process
Real estate professionals in the Spokane area stress the importance of pre-qualifying for financing, before entering this competitive housing market. And this is an area where we can help you.
Our company has been helping home buyers across Washington State for decades We can review your financial situation to determine if you’re a good candidate for a mortgage loan. We could also pre-approve you for a loan, to give you an advantage in the market. Please contact our staff with any mortgage-related questions you have, or to get the process started.
Do You Have Questions About Mortgages?
If you have any queries about home loans in Washington State or any other part of the Pacific Northwest, Sammamish Mortgage can help. We are a family-owned and operated mortgage company serving the Pacific Northwest since 1992. We currently lend in all of Washington, Colorado, Oregon, and Idaho, and are pleased to offer many mortgage programs and flexible qualification criteria. Get in touch with Sammamish Mortgage today!