Market Activity

August 2009 Activity  as reported by the Spokane Association of Realtors resulted in closed sales of 488 units during the month which is down 49 units from closed sales as reported in July 2009 Activity .  This decrease of 49 units represents a 9.1% decrease in units sold as compared to July 2009.  In comparison to August 2008 which reported closed sales of 475 units the market is actually up 13 units which equates to a 2.7% increase this year vs. last year.   This is the first time in 2 and a half years that the number of sales for the month exceeded the number of sales for the same month the previous year.  For August 2009 pending sales reported were 463 units, which is down 4 units as compared to July 2009 pending sales of 467 units, this equates to a .08% decrease from month to month.  In comparison to August 2008 which reported pending sales of 413 units we are actually up 50 units, a 12.1% increase.    

During the month of August 2009 the average sales price in Spokane County  was $189,711 and the median sales price was $169,975.  This is in comparison to July's average and median prices of $194,324 and $176,000 respectively.  Thus on a month to month basis the average price was down $4,613 per unit, a 2.4% decrease, while the median price was down $6,025 per unit a 3.4% decrease.  In comparison to August 2008 our average price is down 6.7%, while the median price is down 8.1% on a year vs. year basis.

Spokane Inventory  for the month of August 2009 stood at 3,466 units, which is up 54 units as compared to June 2009, this is a  1.6% increase month over month.  Compared to August 2008 inventory of 3,467 units we are down only 1 unit compared to this time last year.  This is the  ninth month in a row that inventory this year is less then inventory the same month a year ago.   So for every month in 2009 the inventory level has been lower then the same month in 2008.  Thus we see the market adjusting itself as the theory of supply and demand would suggest.   As we can see from a historical perspective the Spokane Market Inventory Levels tend to reach their peak in the August/September time frame and begin a downward trend as we approach fall and winter.  From the current information it looks as though 2009 is following suit.

While inventory levels are adjusting to the market demands, in August our Spokane Market Absorption Rate moved slightly downward to  13.36% from July's  rate of 13.69%.  While a 13% absorption in this current economic climate is nothing to complain about, we are entering the season of our market cycle where the absorption rate starts a downward trend to its typical lows in December and January.  However, on a positive note as compared to August 2008  where our absorption rate was 11.91%, it looks as though the first time home buyer credit, low interest rates and good prices maybe extending a good  market into the fall.  During August 2009 our Spokane Months of Inventory  on the market stood at 7.49 months.  This is a decrease of 2.46% compared to July's months of inventory available of 7.31 months.   While still not where we would like to see months of inventory, we are in a better position then  August 2008 where months of inventory stood at 8.39.    From a historical perspective the Spokane Inventory Supply Analysis  provides great insight into whether the market is a buyers or sellers market and the seasonality of our real estate market.

Our goal is to assist you in your real estate endeavors thus it is imperative that you understand the market conditions so that you can be successful.   Enclosed is the Spokane August 2009 Price Breakdown and Market Analysis which will provide further analysis and activity for various price ranges and area's of Spokane.  

Commentary

Overall on a year to year basis our year to date our market is down 16.8% as compared to where we were in August 2008, with average and median prices on a year to date level down 7.2% and 6.3% respectively.  So despite the slow start to this years market the Spokane real estate market is holding its own.  The continued low interest rates, the potential extension of the first time home buyer credit and the improving credit markets will all continue to assist in it's recovery.  There is value to be had, good properties, priced right continue to sell!

Here at the Spokane Real Estate Advisor  our primary goal is to educate, serve and provide value to you my clients.  We would like to thank you for your support and business and look forward to our continued relationship and success!

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Home sales seem strong in Spokane
written by Carl on September 14, 2009

It seem the housing market is doing well compared to last year. Thanks for sharing this great information

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