Spokane Housing Market 2025

Complete Analysis: Prices, Trends & Forecast

Updated November 2025

Price Trends: A Look at the Numbers

Spokane's housing market has experienced remarkable growth over the past five years, but 2025 marks a shift toward stabilization. After seeing home prices double between 2017 and 2023 in just 5.9 years—far faster than most national markets—the rapid appreciation has cooled considerably.

Current Price Points

As of October 2025, Redfin reports the median sale price at $365,000, representing a slight decrease of 1.2% compared to last year. However, different sources report varying figures:

• Redfin: $365,000 (October 2025)
• Zillow: $389,119 (down 0.5% YoY)
• Sammamish Mortgage: $404,211 (down 0.2% YoY)
• Realtor.com: $445,000 median listing price (September 2025)

The variance in these numbers reflects different methodologies—listing prices vs. sale prices vs. average values—but all point to the same trend: price stabilization after years of aggressive growth.

What's Driving Current Prices?

• Construction Costs: New building codes, particularly Washington's energy efficiency requirements, are adding $50,000-$70,000 to new home prices
• Land Values: Developable land in Spokane County has become increasingly scarce and expensive
• Infrastructure Demands: Developers are now required to pay for road upgrades, utilities, and other improvements
• Labor Shortages: Construction labor remains limited, driving up building timelines and costs

📦 Inventory Levels: Gradual Improvement

One of the most significant shifts in Spokane's housing market has been the gradual improvement in inventory levels. After years of severe shortages, supply is slowly increasing, providing buyers with more options.

Current Inventory Status

As of mid-2025, Spokane's housing inventory sits at approximately 2.8 months of supply. While this is still below the 6 months typically considered a "balanced market," it represents significant improvement from the sub-2-month supply levels seen in recent years.

Historical Context

Spokane has faced a severe housing shortage for over a decade. According to the Spokane Association of Realtors, the region has under-built approximately 32,000 housing units since 2010 to meet demand. The area needs more than 22,000 new homes over the next 20 years to adequately house its growing population.

⏱ : What to Expect

The average time it takes to sell a home in Spokane has been gradually increasing, signaling a more balanced market than the frenzy of 2021-2022.

Current Market Pace

• Average : days (up from 28 days last year)
• Hot Properties: Well-priced homes in desirable areas can sell in 9-14 days
• Slower Movers: Overpriced or properties needing work may sit 45-60+ days
• Seasonal Variations: Spring/summer sees faster sales; fall/winter slows down

Sales Volume: Recovery in Progress

After hitting historic lows in 2024, Spokane's home sales volume is showing signs of modest recovery in 2025.

Sales Activity Trends

In October 2025, 275 homes were sold, up marginally from 274 homes in October 2024. Year-to-date sales through May 2025 show a 4.2% increase compared to the same period in 2024.

Annual Projections:

• 2024 Closings: Approximately 6,775 homes (lowest since 2013)
• 2025 Forecast: 6,950-7,100 homes (3-5% increase)
• Historical Average: 8,000+ homes annually (pre-2020)

While sales are improving, we're still significantly below the pre-pandemic normal. Experts predict it may take until 2027 to return to average annual sales volumes of 8,000+ transactions.

What's Holding Back Sales?

• Affordability Challenges: High home prices combined with 6.5-7% mortgage rates
• Lock-In Effect: Homeowners with 3-4% mortgages hesitant to sell and buy at higher rates
• Economic Uncertainty: Concerns about recession and job security
• First-Time Buyer Struggles: Entry-level buyers priced out of the market

Neighborhood Breakdown: Where to Buy

Spokane's neighborhoods vary significantly in price, character, and investment potential. Here's a detailed look at key areas:

West Central - $316,443 Average

Character: Historically affordable neighborhood experiencing rapid gentrification and revitalization.

Investment Potential: HIGH - Attracts flippers, developers, and first-time buyers. Proximity to downtown makes it increasingly desirable.

Best For: Investors, first-time buyers, those seeking appreciation potential

North Spokane - $404,210 Average

Character: Diverse area with a mix of older established neighborhoods and newer developments. More affordable than South Hill.

Investment Potential: MODERATE - Steady appreciation, good schools, family-friendly

Best For: Families, first-time homebuyers, those seeking value

South Hill - $479,000 Average

Character: Spokane's most prestigious and desirable area. Beautiful historic homes, mature trees, excellent schools, Manito Park.

Investment Potential: HIGH - Strong appreciation, limited inventory, high demand

Best For: Move-up buyers, professionals, those prioritizing location and schools

Kendall Yards - $699,000 Average

Character: Master-planned urban neighborhood with modern townhomes and condos. Walkable, trendy, close to downtown and riverfront.

Investment Potential: MODERATE - High prices limit appreciation potential, but strong rental demand

Best For: Young professionals, downsizers, those seeking urban lifestyle

🔄 Market Dynamics: Buyer's vs. Seller's Market

The Spokane housing market in 2025 is best characterized as a balanced to slight seller's market, depending on price range and location.

Redfin Compete Score: 74/100

Spokane scores 74 out of 100 on Redfin's competitiveness scale, rating it as "Very Competitive." Here's what this means:

• Many homes still receive multiple offers, especially well-priced properties
• Some buyers waive contingencies to compete
• Average homes sell for about 2% below list price
• Hot homes sell for around 1% above list price
• Homes go pending in approximately 28 days on average

Sale-to-List Price Ratio:

Homes are selling very close to asking price, with an average sale-to-list ratio of . This is down 0.85% from last year, indicating slightly more negotiating power for buyers.

Only 35.4% of homes sold above list price (down 9.57% YoY), compared to 60-70% during the peak frenzy of 2021-2022.

💵 Mortgage Rates: The Wild Card

Mortgage rates continue to be the single biggest factor affecting affordability and buyer activity in Spokane.

Current Rate Environment

• Current Rates (Nov 2025): 6.5-6.8% for -year fixed (800+ credit score)
• 2024 Range: 6.5-7.5%
• Forecast for End of 2025: 6.0-6.5%
• 2026 Outlook: Gradual decline toward 5.5-6.0%

Affordability Impact

Rising rates have significantly impacted purchasing power:

*Based on 20% down payment, principal & interest only

🚚 Migration Patterns: Who's Moving to Spokane?

Spokane continues to benefit from strong in-migration, particularly from high-cost West Coast cities. According to Redfin's latest data (Aug-Oct 2025):

Top Inbound Markets

1. Los Angeles, CA - 5 net inflow
2. Houston, TX - 372 net inflow
3. Portland, OR - 213 net inflow
4. San Francisco, CA - 173 net inflow
5. San Diego, CA - 107 net inflow

Top Outbound Markets

1. Seattle, WA - 3,173 net outflow (largest by far)
2. Bellingham, WA - 191 net outflow
3. Sandpoint, ID - 144 net outflow

🔮 Forecast: What to Expect Through 2026

Price Predictions

Consensus Forecast: Modest appreciation of 2-4% annually through 2026

• Conservative Estimate (NAR, Fannie Mae): 2-2.6% annual appreciation
• Optimistic Estimate (Realtor.com): 8.7% for Spokane specifically
• Most Likely Scenario: 3-4% annual appreciation, keeping median prices in the $410,000-$425,000 range by end of 2026

Sales Volume Predictions

• 2025: 6,950-7,100 homes sold (3-5% increase from 2024)
• 2026: 7,400-7,600 homes sold (6-8% increase)
• Return to Normal (8,000+ annual): Not likely until 2027-2028

Interest Rate Outlook

• Late 2025: 6.0-6.5% range
• 2026: Gradual decline toward 5.5-6.0%
• Long-term (2027+): Stabilization around 5-5.5% (the "new normal")

Inventory Expectations

• Short-term: Continued gradual improvement to 3-3.5 months supply by end of 2025
• 2026: May reach 4-4.5 months supply, moving toward balanced market
• Challenge: New construction remains limited by labor/material costs and regulatory requirements

🏢 Rental Market Update

Spokane's rental market is experiencing significant shifts that benefit both renters and investors:

Key Rental Trends

• Vacancy Rate: Over 5% (up significantly from 2-3% in recent years)
• Rent Growth: Flattening after years of double-digit increases
• New Supply: Multiple apartment complexes have opened, increasing options
• Tenant Leverage: Renters now have negotiating power for lower rents and better terms

⚖ Challenges & Opportunities

Key Challenges

• Construction Constraints: New building codes adding $50K-$70K to new homes
• Infrastructure Costs: Developers passing road/utility costs to buyers
• Labor Shortages: Limiting new construction pace
• Lock-In Effect: Existing homeowners reluctant to sell due to low mortgage rates

Key Opportunities

🎯 Final Recommendations by Buyer Type

First-Time Buyers

• Focus on: West Central, North Spokane, Spokane Valley for better affordability
• Strategy: Maximize down payment (5-10%+) to avoid PMI and build equity cushion
• Programs: Explore first-time buyer programs, down payment assistance, FHA loans
• Timeline: Don't rush, but don't wait for perfect conditions. Buy when you're financially ready

Move-Up Buyers

• Focus on: South Hill, Moran Prairie, Liberty Lake for appreciation potential
• Strategy: Consider buying before selling if possible (bridge loan/contingent offer)
• Advantage: You have equity from current home to use as down payment
• Caution: Be realistic about what you can get for your current home

Investors

• Focus on: West Central (appreciation), multi-family near universities (rental demand)
• Strategy: Look for cash-flow positive properties, not just appreciation plays
• Opportunity: Rental market softening means better deals on investment properties
• Due Diligence: Carefully analyze neighborhood trends and rental rates

Out-of-State Relocators

• Focus on: South Hill, Kendall Yards, Liberty Lake for lifestyle amenities
• Strategy: Visit multiple times, explore different neighborhoods, rent first if possible
• Advantage: Your California/West Coast equity goes much further here
• Caution: Spokane winters are harsh—make sure you're prepared for the climate

🏁 Conclusion: A Market in Transition

Spokane's housing market in 2025 represents a significant shift from the frenzied years of 2020-2022. After doubling in price in less than six years, the market is now experiencing a healthy correction toward more sustainable, moderate growth.

Key Takeaways:

• Prices have stabilized around -$404K and are expected to appreciate 2-4% annually
• Inventory is improving but still tight at months supply
• Days on market are increasing, giving buyers more time to make decisions
• Multiple offers are less common, but well-priced homes still sell quickly
• Mortgage rates around 6.5% are the new normal for the foreseeable future
• Affordability remains a challenge for first-time and local buyers
• Migration from high-cost markets continues to support demand

Whether you're buying, selling, or investing, 2025 offers a more balanced market than we've seen in years. Smart buyers can find opportunities with less competition, while sellers who price correctly can still achieve strong results. The key is working with experienced professionals who understand current market dynamics and can guide you through this transitioning landscape.

Data Sources & Methodology

This analysis is based on publicly available data from multiple authoritative real estate sources and represents market conditions as of November 2025.

This report is for informational purposes only and should not be considered financial or investment advice. Real estate market conditions can change rapidly. Always consult with licensed real estate and financial professionals before making property decisions.