Spokane Market Update April 2008

Greetings Active Rainers!

Perhaps Spring has finally arrived, although a little later than normal here in the Pacific Northwest!  Now that most of the snow has melted and the tree's are blooming we are starting to see an increase in activity and inventory which is typical of this time of year.

Market Activity

Spokane April Activity continues it's upward and positive trend.  Closed sales for the month were 441 units, which is up over 17% as compared to March Activity.  For the month the average sales price was $203,562 and the median price was $183,500.  As compared to the average & median price in April 2007 these figures are down 6.05% and 1.08%.  While volume year to date remains behind last years pace, the overall average and median prices continue to hold steady.  For a graphical look at the Spokane area monthly average and median price trend please click here.

During April the Valley, South and West area's of Spokane all showed improvement in absorption rate based on pending sales as well as experiencing a reduction in the number of months of inventory available.  The North was the only area this month that did not show an improvement in absorption rate or months of inventory available.  All area's saw a significant increase in absorption rate in the higher price ranges, even exhibiting double digit absorption in the 400K to 450K price ranges.  The Spokane market continued to show good activity and strength in the 200K and below price ranges, however even in the 200K to 400K price ranges we began to see improved absorption rates.  For a closer look by area and price range please click here .

Year to date 2008 sales totaled 1,311 units as compared to 1,935  units through April of 2007.  This decrease of 624 units places Spokane sales volume at a 32% decrease compared to year to date last year.  Year to date the average price sales was $201,386 with a median year to date sales price of $180,000.

Inventory for the month stood at 3,218 units, this is up only 174 units from March.  At the current absorption rate of 15% this equates to approximately 6.47 months of inventory on the market.  While this is down from the March 2008 number of 7.2 months of inventory most observers would say it continues to be a buyers market.  Compared to inventory of 2,545 units in April 2007 the number of properties available is up 26% on a year to year basis.

Market Commentary

While continuing to be affected by the national market and economic climate the Spokane market remains a steady and stable market.  Yes time on market has increased and prices have not risen as rapidly as years past however, properties in good condition, priced based on the current market condition continue to sell, sometimes even with multiple offers. 

One of the biggest obstacles facing buyers and sellers is the the loan underwriting process.  In the past underwriters were overwhelmed and review was nothing more then a rubber stamp.  Today, while lenders are advertising great rates the amount of review, scrutinization and time it now takes to receive final loan approval has increased.  I advise all my sellers and buyers that until the actual close (sign, fund & record)process is complete we need to be prepared for anything.  Thus having a professional with the experience, knowledge and ability to guide you through this process, whether you are a buyer or seller, is vital to ensure that you will have a successful real estate transaction.

If you or someone you know could benefit from my services please feel free 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