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Recent housing market forecasts for Spokane, Washington suggest that local home values will continue rising in 2021.
Home values in Spokane, Washington rose steadily and significantly in 2020. According to several sources, the median home price in the city rose by double digits over the last 12 months or so. But housing analysts are predicting smaller gains over the next few months.
When this article was published, in January 2021, the median home price in Spokane was just over $289,850. House values are expected to continue rising throughout 2021.
The economists at Zillow expect house prices in the city to rise by 12.2% over the next 12 months. That would roughly keep in line with how much prices increased in 2020, which rose by a whopping 16.5%.
This reflects real estate market predictions issued for other Washington cities, as well as the nation as a whole. Housing analysts are forecasting that prices will still increase in 2021, and perhaps at an even greater pace than in 2020.
The ongoing demand and spiking prices in Spokane has a lot to do with the tight inventory in the city. Throughout 2020, there was a major shortage of homes to meet the demand in the city, and this trend is expected to continue throughout 2021.
The population of the city continues to grow, which leads to increasing demand for housing at a time when housing supply continues to be low, putting upward pressure on home prices.
As of January 2021, Spokane had less than a 1-month supply of homes to meet the demand, which points to a market that’s much more off-balance. A balanced market is one that has a supply of 5 to 6-months worth of inventory. Clearly, Spokane is well under that threshold.
Some homebuyer hopefuls looking in the area may have a difficult time finding a home within their budget. The housing inventory situation in Spokane is one of the tightest seen among major cities across the country. Local buyers should keep this in mind as they begin searching for their next home.
When home-price appreciation slows, some people view it in a negative light. But that’s not always the case. Home values across Washington rose faster than usual over the last couple of years, posting double-digit gains annually.
That kind of appreciation isn’t sustainable over the long term, because it outpaces wage growth and other economic metrics. Under such conditions, housing markets can become unaffordable to a large number of residents.
Considering the relatively lower prices in the city compared to other nearby markets like Seattle, Spokane might be a great place to invest in 2021. Buyers looking to build equity relatively quickly may find that they can get in on an upward trend in prices in the city.
Of course, due diligence is necessary before making any large investment in real estate. But based on forecasts on increasing prices in Spokane, now may be a good time to invest in a property in the city before prices continue to soar.
Disclaimer: This article includes forecasts and predictions for the Spokane, Washington real estate market in January 2021. Such statements were provided by third parties not associated with our company. We have compiled and presented them here as an educational service to our readers.
At Sammamish Mortgage ,we have been providing home loans to clients all over the Pacific Northwest, including Washington State, Colorado, Idaho, and Oregon since 1992. We’re a family-run company based in Bellevue, Washington, and offer many different mortgage programs and products with flexible qualification requirements. Get in touch with us today if you have questions about applying for a mortgage.
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