If you are interested in selling or purchasing a house in Spokane, Washington, or neighboring communities in northern Idaho at the moment, you might be forgiven for being anxious about the housing market right now. Things have changed a great deal in the last couple of years in housing markets across the country. In addition to significant demographic shifts, economic trends concerning inflation and interest rates have created uncertainty for many people.
In these times, it is helpful to get the perspective of a professional. John Graham is the CEO and owner of The Legacy Group Real Estate, one of the top-producing real estate offices in the region. He has been in real estate for over 20 years, and his perspective on the current housing market in Eastern Washington and Northern Idaho provides valuable insight for both buyers and sellers. In a recent interview, Graham shed light on the evolving real estate landscape and offered guidance on how to approach the changing conditions without succumbing to market anxiety. Here is a summary of some of his insights:
Adjust Your Expectations to a Changing Landscape
The past few years have witnessed significant transformations, prompting many to believe that a buyer’s market has emerged. However, the reality is somewhat different. In areas like Coeur d’Alene and Spokane, there’s still only two-and-a-half to three months’ worth of inventory available. Technically, that is still very much a seller’s market and far from the six to seven-month threshold that real estate professionals usually use to define a buyer’s market.
However, this increased inventory might feel unusual in a market accustomed to homes flying off the shelves within days. Yet, it’s essential to remember that this surplus shouldn’t be misconstrued as a drastic shift to a buyer’s market. Instead, it’s more like a recalibration towards a more balanced scenario.
This shift poses a challenge for current sellers, who may think lightning-fast sales are the norm. Just a few years ago, a house might have been scooped up within a week, sometimes days. However, the current environment mandates a more realistic perspective. Homes may take a few months to sell, which requires patience on the part of sellers. It’s not that the market has suddenly turned hostile; it’s merely settling into a more sustainable pace.
Moreover, the trajectory of prices has altered. While the meteoric rise might have flattened out, it’s not a cause for alarm. Prices are stabilizing and, in some cases, experiencing modest increases. There might be places where prices have decreased slightly, but it’s far from a significant decline.
Factors in Play
Geographical areas and price ranges both play a role in this evolving landscape. The average sales price in the region is around $450,000. Homes in desirable neighborhoods, well-maintained and priced appropriately, still command quick sales and often multiple offers.
Historically, this area’s market has been resilient and desirable. While there might be fluctuations, the region remains sought-after compared to many other parts of the country. The entire country is navigating through similar shifts, with interest rates playing a significant role. The current interest rates are around the mid-sixes, which might feel high compared to recent lows but are in line with historical averages.
Finding Balance Amidst Uncertainty
You can think of this current market as being on a boat. For the last few years, we have been cruising along at high speed, and the waters felt smooth as the scenery blurred by you. But now you are starting to slow down, and the boat begins to rock a bit – you begin to feel the waves and are unsteady. Similarly, after a period of rapid growth with house prices shooting up and interest rates low, you became used to that feeling. But now the market is seeking balance, like a boat slowing down and rocking. But this is a temporary feeling. Once you get your balance, the new state of things will also feel “normal.”
In particular, don’t get spooked by interest rates. While buyers can wish for the sub-5% rates of the past few years, don’t bank on it and sit on the sidelines. As noted above, current rates are consistent with historical rates, and the market will likely stabilize around the current rate unless unforeseen global events cause significant shifts. Moreover, current interest rates are keeping housing prices from going on a steep upward trajectory. If rates go down, you can always refinance. But in the long run, buying a home has historically been a solid investment, so don’t let interest rates stop you if that is what you want to do.
Moving Forward with Confidence
John Graham’s insights provide a compass for both buyers and sellers in the Eastern Washington/Northern Idaho housing market. Although conditions have changed, it shouldn’t evoke panic or anxiety. Instead, this is a time for cautious optimism while the market recalibrates. Homes might take a little longer to sell, and price growth might be less meteoric, but the fundamentals remain strong in this region.
If you are interested in buying or selling a home in eastern Washington, northern Idaho, or Montana, call the professionals at The Legacy Group. Under the leadership of John Graham, The Legacy Group team members have proven to be the go-to professionals when clients are seeking excellence in a real estate agency. To learn more about the current market and what we can do for you, contact The Legacy Group today.