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Spokane, WA: Real Estate Market & Trends 2016

Published on Monday - November 28, 2016

The Spokane real estate market continued its upward climb in the first-half of 2016. Home prices for Spokane real estate grew relative to last year, although still below the national average. Appreciation rates have skyrocketed past the rest of the country, as gains in the last three years have extended the trend of positive price growth since the recession. Helping to support the growth of the Spokane real estate market in 2016 includes new housing construction, which is vastly outpacing the national average, along with the local economy and home affordability. In fact, the Spokane housing market has become one of the more affordable in the country. The Spokane real estate market should continue the positive trend in the second-half of 2016.

Spokane, WA Real Estate Market Statistics:

Spokane real estate investments

One of the biggest surprises during the first-half of 2016 were appreciation rates. One-year appreciation rates for Spokane real estate reached 9.5 percent during the second quarter, compared to the national average of 4.9 percent. Even better, three-year rates rose to 19.9 percent, outpacing the 17.8 percent achieved by the rest of the country. For Spokane real estate investors and homeowners, price appreciation and principle payments in the last three years have boosted total equity growth since the recession. For those considering Spokane real estate investments, the following spotlights appreciation gains in previous years:

  • Homes purchased in the Spokane, WA housing market one year ago have appreciated, on average, by $21,358. The national average was $14,963 over the same period.
  • Homes purchased in the Spokane, WA housing market three years ago have appreciated, on average, by $43,896. The national average was $46,878 over the same period.
  • Homes purchased in the Spokane, WA housing market five years ago have appreciated, on average, by $60,719. The national average was $82,353 over the same period.
  • Homes purchased in the Spokane, WA housing market seven years ago have appreciated, on average, by $51,227. The national average was $77,054 over the same period.
  • Homes purchased in the Spokane, WA housing market nine years ago have appreciated, on average, by $37,198. The national average was $31,126 over the same period.

Total equity gains for Spokane real estate continued to work in favor of homeowners and investors during the first-half of 2016. In the past year, homes have appreciated, on average, by $21,358. In the last nine years, however, total equity gains for Spokane real estate have outpaced the national average only one other time: year nine. Homes purchased nine years ago have appreciated by $37,198, whereas the rest of the country earned gains of $31,126. From an investor’s perspective, Spokane real estate investing appears to be heating up and could turn the page in the second-half of 2016, especially if appreciation rates continue to rise.

Foreclosures are another component to consider when analyzing the investment opportunities of a market. According to RealtyTrac, the month of October saw 824 properties in some stage of foreclosure. The number of Spokane foreclosures decreased seven percent than the previous month, and are now 34 percent lower than the same time last year. REO properties, on the other hand, have seen slightly different outcomes. Bank owned properties in Spokane fell 25.8 percent compared to the previous month, but rose 133.3 percent compared to the previous year. That said, REO properties in the Spokane real estate market could be an investment opportunity for the taking.

Spokane, WA Real Estate Market Summary:

Spokane housing market

  • Current Median Home Price: $209,500
  • 1-Year Appreciation Rate: 9.5%
  • 3-Year Appreciation Rate: 19.9%
  • Unemployment Rate: 6.5%
  • 1-Year Job Growth Rate: 2.2%
  • Population: 210,270
  • Median Household Income: $46,463

Spokane, WA Real Estate Market (2016) — Q2 Updates:

Spokane real estate investors

The median home price for the Spokane real estate market was $209,500 during the second quarter of 2016, compared to the national average of $239,167. Although still below the rest of the country, home prices for Spokane real estate continue to grow relative to last year. The second quarter also saw surprising increases in appreciation rates. One-year appreciation rates for Spokane real estate were 9.5 percent, while three-year rates reached 19.9 percent, compared to one-year and three year rates of 4.9 percent and 17.8 percent achieved by the national average.

One factor helping the Spokane real estate market during the second quarter was the local economy. Although unemployment remains higher than the national average, reaching 6.5 percent compared to 4.9 percent, employment has held up and is on an upward trend. One-year job growth was 2.2 percent during the second quarter, in comparison to the 1.9 percent witnessed by the national average. When all is said and done, the local economy in Spokane is strong compared to other markets.

New housing construction and home affordability remain the cornerstones of the Spokane real estate market. Homeowners paid 11 percent of their income to mortgage payments during the second quarter, compared to the rest of the country that paid 15.8 percent. Although historically strong, the Spokane housing market remains one of the more affordable housing markets in the country. One factor that could influence home affordability in latter years is new housing construction. The second quarter saw new housing construction levels hit 105.3 percent above the long-term average, while single-family housing permits skyrocketed to 55.5 percent, compared to 10.6 percent by the national average. Construction is on the rise relative to last year, which suggest local inventory has stabilized.

Foreclosures are another factor investors and homeowners should pay special attention to in the second-half of 2016. While the number of Spokane properties in some stage of foreclosure decreased during the second quarter, the number of REO properties vastly increased. In comparison to last year, REO properties have risen 133.3 percent. For investing purposes, the Spokane real estate market is quietly becoming a hotspot for bank owned properties, which may continue in the second-half.

Looking forward, the Spokane real estate market is expected to see stronger growth in the next 12 months, according to the National Association of Realtors. Home prices for Spokane real estate are forecasted to grow by 6.3 percent in the next calendar year, compared to the national average of 3.6 percent. All in all, the Spokane real estate market is shaping up to become a serious contender.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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