|Spokane WA Real Estate Market Update Feb 2012|
The February Spokane Real Estate Market results are in; an amazing decrease in active inventory and increasing levels of closed and pending sales made for a second great month of 2012. For a complete rundown on the activity and results . . .
February 2012 Market Activity as reported by the Spokane Association of Realtors reported closed sales of 269 units during the month, which is up 63 units from closed sales as reported in the January 2012 Market Activityresults, which is a 30.6% increase month over month. In comparison to February 2011 which reported closed sales of 190 units the market is up 79 units which equates to a 41.6% increase this year vs. last year. On a year to date basis closed sales are up 27% as compared to 2011.
During the month of February 2012, pending sales reported was 277 units, which is up 14 units as compared to January's 2012 pending sales of 263 units, this equates to a 5.3% increase from month to month. In comparison to February 2011, which reported pending sales of 257 units pending sales are down 7.8% on a year vs. year basis.
During the month of February 2012 the average & median sale prices in Spokane County was $155,679 and $144,900 respectively. This is in comparison to January's average and median sales prices of $155,957 and $146,000. So virtually no change month over month. In comparison to February 2011, where the average price was $166,418 and the median price was $150,000, the average is down 6.5% with the median being down 3.4% respectively. We continue to see the impact on pricing of short sales and REO properties. As we move forward any increase in the sales of these units will continue to place downward pressure on the average and median price in Spokane.
Spokane Inventory for the month of February 2012 stood at 2,376 units, which is down 518 units as compared to January 2012, which is a 17.9% decrease. This is the first time since I have been in real estate (2005) where February inventory levels were not equal to or higher than January's. The amount in relative number and percentage of the decrease is significant. Compared to February 2011 where inventory stood at 2,663 we are down 287 units compared to this time last year, which equates to a 10.8% decrease. Based on the historical trend Spokane Market Inventory Levels we would expect February inventory levels to actually increase vs. January however as you can see they dramatically went the other way. This may help to explain why we are seeing multiple offer situations on properties that are not short sales or REO's. The spring demand is there (buyers) but the inventory levels are much lower than anticipated, thus creating competition for good properties.
In February, our Spokane Market Absorption Rate increased from 9.09% in January to the current rate of 11.66%. This is an increase of 28.29%. During February 2012, our Spokane Months of Inventory on the market stood at 8.6 months, as compared to January's 2012 months of inventory of 11. This is good for a 22.05% improvement month to month. As you can see in theSpokane Inventory Supply Analysis during February we were able to get down below double digit months of inventory again.
In February we saw a sharp increase in closed sales compared to January's results (see Spokane Market Closed Sales Trend). However, from a pending sales unit perspective we would hope for a steeper increase to validate the sense we are getting that the market is improving and the momentum we have seen early on will continue. Looking at the Spokane Market Pending Sales Trendpending sales for February we see a slight increase over January while higher than February 2011 we are well below February 2010 levels.
The major surprise in February was the significant decrease in available inventory. Many Realtors I have spoken to (including myself) have been in multiple offer situations. While some of this is due to REO's and short sales it may also have to due with the fact that inventory levels are significantly lower than they have been in years, with interest rates also at their lowest levels in years (Interest Rate Trend), qualified buyers are having to compete for good properties. This combination of lower inventory and demand resulted in excellent absorption (11.66%) during the month. Let's hope demand stays strong as we would expect inventory to continue (or perhaps start) that spring rise.
As 2012 continues to unfold if you need assistance, or just have some questions regarding the real estate market, please don't hesitate to contact us. Our objective here at the Spokane Real Estate Advisor is to assist you achieve your life's dreams through the creation of wealth and security in real estate. If we can be of assistance, we would welcome the opportunity to earn your trust, respect and business.
MBA, e-PRO, GRI
Spokane Real Estate Advisor
Licensed in Washington & Idaho
John L Scott Real Estate
Cell (509) 979-2535
Office (509) 924-4200
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