Greetings Valued Clients,

We've made it to the half way mark and despite the situation with the national real estate market our local Spokane market continues to show stability and growth.  As the June results show sales, average price and median price all improved, while inventory increased only slightly.  Overall we continue behind last year's pace however, there are good deals and values for both buyers and sellers in the current market.

Market Activity

June Activity as reported by the Spokane Association of Realtors showed sales up 21% as compared to May's Activity.  Closed sales for the month were 592 units while pending sales for the month totalled 517 units.    During June the average sales price was $216,454 and the median price was $188,250, which are both up substantially as compared to May which were $206,284 & 183,000 respectively.   In comparison to June 2007 the average price is up $2,975 and the median price is up $3,100.  Year to date closed sales through June 2008 totaled 2,394 units, compared to year to date sales through June 2007 of 3,453 units.  This 1,059 unit difference represents a 30% decrease in closed sales year over year.   Pending sales year to date through June 2008 of 2,617 units is down 1,060 units compared to pending sales year to date through June 2007.   This represents a 29% decrease in pending units year to year.

Spokane Inventory for the month stood at 3,422 units, which is up 68  units compared to May  2008.  In comparison to this time last year Inventory is up approximately 18% which is 516 units.  Last year Spokane's highest absorption rate of 28% occurred in May, so far this year the same holds true as in June our absorption rate moved lower to 15% from it's high in May of 16%.  You can see the impact of slightly higher inventory and lower sales reflected in our months of inventory on the market, which in June stood at 6.62 months.   

When months of inventory are above the 6 month supply the market is considered a buyer's market.  Buyers have many properties to choose from and thus have an advantage when negotiating with sellers.  When inventory levels are between 3 to 6 months the market is considered neutral, where neither the buyer or the seller has an advantage.  Under 3 months is considered a sellers market, where sellers have an edge over buyers. 

During June we experienced in increase in both average and median price which has continued since February.  So despite the decrease in units sold and pending, and the increase in inventory the Spokane real estate market continues to hold its value and appreciation.  Again, the days of double digit appreciation may be gone for a while but Spokane's overall economic condition and forecast continue to bode well in regards to price appreciation for the local real estate market.

During June we continued to see strength in all areas in the 250K and below price range with double digit absorption rates. In addition we saw good absorption in various areas and price ranges such as the Valley where we had good activity (23% absorption) in the 350K to 375K price range. While the South Hill had good activity in the 450K - 500K price range (33% absorption) and the North in the 350K - 375K price range (18% absorption). For a complete look and analysis of the market activity in Spokane please click here.

Market Commentary

YES the market has its challenges!  However that doesn't mean its not the right time to buy or sell.  To be successful in this market you need to listen to what the market and your Realtor are telling you.  The beauty of the real estate market is that it is driven by the age old supply and demand equation.  As a seller and/or a buyer the sooner you can come to grips with this, the sooner you can benefit, thus allowing you to continue creating wealth and living your dreams. 

If you would like a more in depth discussion of the market and how you can benefit in the current conditions please contact me.  I look forward to earning your trust, respect and business! 

Regards,

John Creighton
Spokane Real Estate Advisor
(509) 979-2535

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