Spokane March 2008 Market Update

Greetings Active Rainers,

Well it's hard to believe we are already 1/4 of the way through 2008.  The first 3 months have presented some interesting challenges for our local market and no doubt more to come.  Considering the overall sense of real estate nationwide Spokane continues to feel the affects however, the local market continues to show strength and stability.

Market Activity

Spokane March activity continues it's upward trend.  Closed sales for the month were 376 units, which is up over 28% as compared to Feb Activity.  For the month the average sales price was $197,110 and the median price was $177,785.  As compared to the average & median price in March 2007 these figures are down 4.45% and .35%.  In addition, these results continue a downward trend from last years (2007) overall average and median prices of $211,909 and $185,400 respectively.  For a graphical look at the Spokane area monthly average and median price trend please click here.

Looking at pending sales by area, the North and West area of Spokane both exhibited absorption rates over 15% with the Valley and South areas producing 11% absorption each.  Under the 200K price point all area's exhibited double digit absorption rates, with the North area showing good absorption all the way up to the 400K price range.  Above the 400K price range all area's continue to show single digit absorption rates.  For a complete breakdown by area and price range please click here

On a quarterly basis Q1 2008 sales totaled 869 units as compared to 1,327 units in Q1 of 2007.  This decrease of 458 units equates to a 35% decrease in units sold.  For the quarter the average price was $200,363 with a median price of $177,898.

Inventory for the month stood at 3,004 units, this is up 266 units from February.  At the current absorption rate of 14% this equates to approximately 7.2 months of inventory on the market.  However, this is down from the high of 9.83 months of inventory in January 2008.  Compared to inventory of 2,334 units in March 2007 the number of properties available is up 30% year to year.

Market Commentary

With the hope of spring in the air and the up turn in the absorption rate over the last few months the market is starting to warm up.  For Buyers, interest rates continue to hoover near the 6% rate,  with inventory up and more still to come, there are choices even for the most discerning buyers.  For Sellers, with the spring increase in inventory and some concern and hesitancy in regards to the economy pricing your property correctly becomes even more important.  While it may not seem logical, initially pricing towards the middle to low end of your range in most cases will result in you obtaining a higher value for your property then starting out on top and eventually having to lower your price.  Just like you buyers are looking for value and when property is priced appropriately they are inclined to offer full value and act more quickly. 

I trust this update has been of value however if you have further questions or concerns please don't hesitate to contact me. I look forward to earning your trust, respect and business! 

Regards,

John Creighton
Spokane Real Estate Advisor
http://SpokaneRealEstateAdvisor.com
(509) 979-2535