Greetings Valued Friend,

I hope this newsletter finds you enjoying what I like to refer to as "Chamber of Commerce" days here in the Inland Northwest.  The warm and beautiful days punctuated by the changing colors and the cool and clear nights.  It's days like these that keep attracting people to our area.  In the last few weeks I've had several out of town people tell me what we all ready know about Spokane "Near Nature, Near Perfect".  As we start back to school and work from our summer activities I wanted to take a few moments to update you on the local real estate market. 

Market Activity

With the late arrival of summer our typical dog days of summer ran all the way through August this year.  August Activity as reported by the Spokane Association of Realtors reported closed sales of 473 units during the month which is down from the 586 closed sales as reported in July's Activity.  In comparison to August 2007 closed sales were down 235 units which is a 33% decrease.   During August pending sales were 413 units, which is down 131 units as compared to July pending sales of 544 units, which equates to a 24% decrease.  In comparison to August 2007 pending sales were down 212 units, a 34% decrease.

On a year to date basis closed sales through August of 3,454 units, compared to year to date sales through August  2007 of 4,884 units.  This 1,430 unit difference represents a 29.3% decrease in closed sales year over year.   Pending sales year to date through August 2008 of 3,575 units is down 1,341 units compared to pending sales year to date through August 2007.   This represents a 27.3% decrease in pending units year over year.  

During the month of August the average sales price in Spokane county was $203,493 and the median price was $185,000 with the average being down as compared to July's' average of $221,658 and the median price also being down as compared to July's median price of $190,385.  While we typically see fluctuations on a month to month basis looking at the YTD average and median price we see that as compared to 2007 the Spokane market is continuing to hold onto its value.   YTD through August our average price of $208,300 is down 1.7% compared to 2007's YTD average price of $212,053.  Looking at median price YTD we are at $185,500 which is down only $500 (.27%) versus the August 2007 YTD median price of $186,000.

From a market perspective Spokane Inventory for the month of August stood at 3,467 units, which is up 11 units as compared to the previous month.  In comparison to August 2007 Inventory is up approximately 7% which equates to 226 units.  This slowdown in inventory increase has been affected by the concern on a national economic level that now is not a good time to sell your home, unless you have too.  During August we saw the overall market absorption rate  decrease to 12%.  This is the first decrease of absorption rate we have had in almost 6 months and is the lowest rate since January of this year.  While the increase in inventory was minimal, the decrease in pending sales resulted in an increase in our  months of inventory  on the market as August stood at 8.39 months.  This is an increase of 32% as compared to July's months of inventory available of 6.35 months.    

As we have discussed prior 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.  Based on the recent trends we continue to be in a "Buyers" market and the buyers are continuing to gain strength. 

From month to month we experience strength and weakness in various area's and segments of the market.  Whether you are considering buying or selling a property understanding the nuances of your market is key.  Enclosed is the August Market Analysis which will provide further analysis and activity for various price ranges and area's of Spokane.

Commentary

Many factors such as the election, oil prices, unemployment, the government bail out of Fannie and Freddie Mac etc. all contribute to the state of our local real estate market.  Like others I don't have a crystal ball but what we can provide here at the Spokane Real Estate Advisor is solid and sound information, analysis and insight into our local market.  It is times like these when the services and value of a professional are most needed.  My goal is to educate, serve and provide value to you my clients.  There are no boundaries just your imagination!

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

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