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As we move through the second half of 2025, Spokane, Washington, continues to draw attention from home buyers and investors thanks to its scenic beauty, affordability, and growing economy. But what does the future hold for Spokane’s housing market? Will home values continue to rise, stabilize, or decline? This article explores the current data, economic drivers, and forecasts to help you understand where Spokane’s home values are headed over the next few months and beyond.
The following data presents a snapshot of Spokane’s current home prices and trends in the market:
As of the first week of July 2025, Spokane’s mortgage rates are as follows, based on a $600,000 loan for a single-family home and an 800+ credit score:
* Rates frequently change. Check our rate quote page regularly to get the most up-to-date rates and APRs.
Three key elements are strongly influencing Spokane’s current housing market and home prices:
Spokane’s housing inventory has long been very tight and well below what would be considered a balanced market. Fewer homes on the market mean increased competition, especially for well-priced properties in desirable neighborhoods.
That said, inventory has improved somewhat and now sits at roughly 2.8 to 3 months’ supply. While still a tight market, buyers now have more options than a few short years ago.
Mortgage rates rose sharply in 2022, stabilizing around 6.9% to 7% for 30-year fixed-rate mortgages by early 2025. Forecasts suggest a steady dip to roughly 6% by the end of 2025.
Spokane’s economy is diversifying and expanding to include tech, healthcare, and education, thanks to expansions such as the University District and downtown developments like Kendall Yards. Such zoning behavior allows for more multiplexes, which may support future supply.
While Spokane’s overall market is growing modestly, some neighborhoods are gaining more traction in the eyes of buyers and investors:
Located on the south side of Spokane, South Hill remains one of the most desirable areas in the city, with strong appreciation and limited inventory.
Kendall Yards is a trendy, walkable area located on the north bank of the Spokane River, just west of downtown. It has recently been characterized by new developments and rising prices.
North Spokane offers home buyers more affordable options, attracting first-time home buyers and investors.
West Central is another affordable neighborhood in Spokane, experiencing rapid gentrification and increasing interest from flippers and developers.
Based on current trends and expert analysis, here’s what we can expect for Spokane’s housing market throughout the second half of 2025:
Spokane’s home values are expected to rise modestly through the end of 2025. This is driven by continued demand, limited supply, and improving interest rate conditions.
Estimates in home price increases suggest a healthy yet moderate 3.6%.
As mortgage rates stabilize or decline slightly, more buyers are expected to enter the market. This is particularly expected among those who put their home buying efforts on hold in 2023 and 2024.
Spokane’s population growth and affordability strengthen the local rental market, supporting investor interest and property values.
As mentioned, inventory remains tight, particularly as builders continue to deal with labor shortages and rising material costs. These factors will likely keep inventory limited and support price growth, despite a slight improvement in supply recently.
Yes, Spokane continues to offer home buyers and investors a good opportunity to enter the market. With relative affordability and continued demand, good buys can still be found, particularly in neighborhoods near job centers—including tech hubs in Spokane-Coeur d’Alene—and areas that benefit from economic revitalization.
As of July 2025, the average sale price in Spokane is $404,211, as per Zillow.
Most forecasts predict a modest price increase throughout the remainder of 2025.
Spokane’s average home price of $404,211 is about 10% higher than the national average, which is currently at $367,969.
Homes typically sell in 18 days, according to RedFin, with many receiving multiple offers and selling close to or above list price.
Key drivers include rising housing inventory, steady mortgage rates, growth in tech and healthcare sectors, and zoning changes increasing housing supply.
Yes, Spokane is in the midst of a significant housing shortage and needs more than 22,000 new homes over the next 20 years to meet demand. This is making it more difficult for many residents to afford suitable housing.
Neighborhoods such as South Hill, Kendall Yards, and the University District are seeing strong demand and price appreciation due to walkability, location, and amenities.
Yes, Spokane remains attractive for investors thanks to its affordability, rental demand, and steady price appreciation.
Spokane’s housing market in 2025 remains stable and affordable. With modest appreciation, strong rental demand, and a growing population, Spokane is well-positioned for sustainable growth in the remainder of 2025 and for years to come.
If you’re looking to buy a home in Spokane, WA, we can help. At Sammamish Mortgage, we offer various mortgage home loan programs for home buyers and real estate investors in WA, OR, ID, CO, and CA. Visit our website to get an instant rate quote, or get in touch with us today to have your mortgage questions answered!
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.