Greetings Valued Clients!

Well with temperatures in the mid 30's at night this past week and reports of SNOW flurries here in Spokane perhaps last month's newsletter that Spring has finally arrived here in the Pacific Northwest was a little premature!   Despite the late arrival of Spring/Summer we continue to see an upward trend month to month in both closed and pending sales.

Market Activity

May Activity as reported by the Spokane Association of Realtors showed sales up 10.9% as compared to April Activity.  Closed sales for the month were 489 units while pending sales for the month totalled 543 units.    For May the average sales price was $206,284 and the median price was $183,000.   Last year in May the average sales price was $210,808 and the median price was 184,950.   Year to date closed sales through May 2008 totaled 1,803 units, compared to year to date sales through May 2007 of 2,649 units.  This 846 unit difference represents a 32% decrease year over year.   Pending sales year to date through May 2008 of 2,100 units is down 881 units compared to pending sales year to date through May 2007.   This represents a 29.5% decrease year to year.

Inventory for the month stood at 3,354 units, which is up 136 units compared to April 2008.  In comparison to this time last year Inventory is up approximately 22% which is 598 units.  Despite the increase in inventory, the increase in pending sales contributes to an absorption rate of 16% which equates to approximately 6.18 months of inventory on the market.  While not dramatic, since January 2008 the area absorption has increase from a low of 10%, while months of inventory has also decreased from the January high of 9.83 months. 

During May the market showed improved strength in the South area, consistent performance in the North and Valley area's and a little weakening in the West.  Above the 400K price range in all area's we continue to see low absorption rates and significant months of inventory.    Below the 125K range it continues to be a seller's market.  For a closer look by area and price range please click here .

While inventory is on the typical spring cycle increase, and with sales volume down from last years pace one would expect significant pressure on average and median price.   However, here is Spokane we continue to see good value and a majority of homes holding their appreciation.  Since the lows of Feb/Mar we have seen a rise in average and median sales prices for the month.  For a graphical look at the Spokane area monthly average and median price trend please click here.

Market Commentary

The market continues forward with guarded optimism.  Finally we are starting to hear some good news nationally along with the slow but positive trend we have been experiencing in Spokane, the future is starting to look better.  While inventory is up, the month to month increase over last year is on the decline, the overall absorption rate continues its positive trend and months of inventory available is down for the 5th month in a row.  If Spring/Summer ever arrives here in the Pacific Northwest who knows what will happen. 

As we approach the dog days of Summer, 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

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