Market Activity

March Activity as reported by the Spokane Association of Realtors reported closed sales of 326 units during the month which is up 132 units from closed sales as reported in February's Activity.  This increase of 132 units represents a 68% increase in units sold as compared to February 2009.  In comparison to March 2008 closed sales of 382 units we we are down 56 units which equates to a 14.6% decrease this year vs. last year.  During March 2009 pending sales reported were 390 units, which is up 121 units as compared to February 2009 pending sales of 269 units, this equates to a 44.9% increase from month to month.  In comparison to March 2008 pending sales of 423 units we are down 33 units, a 7.8% decrease year over year.  

During the month of March the average & median sales prices in Spokane WA were $200,229 and $176,200.  This is in comparison to February's average and median prices of $197,169 and $171,654 respectively.  Thus on a month to month basis the average price was up $3,060 per unit, a 1.55% increase, while the median price was up $4,546 per unit a 2.64% increase.  On a year to date basis through March  the Spokane WA average price is $200,475 and the Spokane WA median price is $175,000.   As compared to the first quarter of 2008 the average price is approximately the same while the median price is down less then 1.5%.  So despite the uncertain times our market here in Spokane continues to hold value.

Spokane WA real estate inventory for the month stood at 2,687 units, which is up 61 units as compared to February 2009. This increase represents a 2.32% increase month to month.   As compared to March 2008 inventory of 3,004 units we are down 11.7% which equates to 357 units.  This is now the fourth consecutive month in a row where inventory is less then inventory the same month a year ago.  Again reinforcing what we have said all along is that our market here in Spokane is handling the storm.

During March the continual market balancing of supply and demand resulted in a substantial increase in both closed and pending units.  The end result is that our  Spokane WA real estate market absorption rate  jumped to an astounding 14.51%.  This is in comparison to February's absorption rate of 10.24%, which is a 41.69% increase from month to month. This is now the second month in a row where our Spokane WA absorption rate has been in double digits. In addition, this is the highest absorption rate since July 2008 (15.74%) and even higher then March 2008's rate of 13.90%.   This increase in our absorption rate resulted in Spokane WA months of inventory on the market during March to stand at 6.89 months.  This is a decrease of over 29.4% compared to February's months of inventory available of 9.76 months.   Thus at the current absorption rate of 14.51% and assuming no new listings come on the market, it would take us 6.89 months to sell the current inventory of 2,687 units.

As Spring has finally arrived (despite the reported 6 inches of snow last Monday in north Spokane County) we are seeing the first signs of a significant increase in market activity.  With interest rates continuing to hold below 5%, the 8K credit available to first time home buyers and a general better feeling about the economy in our sweet spot of 250K and below we saw double digit absorption rates across the market.  We also saw the first glimpse of good activity in the 275K to 400K range.  Enclosed is the Spokane WA March Price Breakdown and Market Analysis which will provide further analysis and activity for various price ranges and area's of Spokane.  

Commentary

As you can see from almost every graph and statistic, March was a breakout month for the Spokane Market.  The long cold winter is finally over and Spokane is ready to buy and sell some real estate.  The next few months (April - June) will be a telling sign as to where our market is heading.  Inventory is coming on the market and the velocity (pending sales) is on an upward swing.  If you or anyone you know has questions or needs assistance with their real estate endeavors it would be our pleasure to assist.  Remember here at the Spokane Real Estate Advisor our primary goal is to educate, serve and provide value to you my clients.  I look forward to earning your trust, respect and business and turning this wild Spring into a Hot summer!

Regards,

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

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