Valued Clients, Friends & Prospects

 Wow it's hard to believe 2009 is almost history!  Enclosed is the November Real Estate Market Update for Spokane, I trust this information will be of value and use as we finish up the year and start looking forward to 2010. . .

Market Activity

November 2009 Activity  as reported by the Spokane Association of Realtors resulted in closed sales of 471 units during the month which is down 36 units from closed sales as reported in October 2009 Market Activity .  This decrease of 36 units represents a 7.1% decrease in units sold as compared to October 2009.  In comparison to November 2008 which reported closed sales of 252 units the market is up 219 units which equates to an 86.9% increase this year vs. last year.  During the month of November 2009 pending sales reported were 334 units, which is down 147 units as compared to October 2009 pending sales of 481 units, this equates to a 30.6% decrease from month to month.  In comparison to November 2008 which reported pending sales of 225 units the market is up 109 units, a 48.4% increase this year vs. last year.   Thus we can see that the first time home buyer tax credit, the low interest rates and improving economy have contributed to making 2009 much stronger then the end of 2008.   

During the month of November 2009 the average sales price in Spokane County  was $177,068 and the median sales price was $159,900.  This is in comparison to October's average and median prices of $177.072 and $164,900 respectively.  On a month to month basis the average price was down $4 per unit, while the median price was down $5,000 per unit a 3.03% decrease.  In comparison to November 2008 the November average and median prices are both down 11.5% on a year vs. year basis.

Spokane Inventory  for the month of November 2009 stood at 2,923 units, which is down 220 units as compared to October 2009, this is a 6.9% decrease month over month.  Compared to November 2008  where inventory stood at 2,925 units we are down 2 units compared to this time last year, this is less then a .1% decrease.  As history has shown us the inventory levels during the holiday season continue their downward trend.  As we can see from a historical perspective the Spokane Market Inventory Levels have been making their descent since the peaks levels in Aug/Sept.

In November our Spokane Market Absorption Rate  showed a significant decrease from October's rate of 15.30% to November's rate of 11.43%.  The significant decrease in pending sales during November was not enough to offset the only slight decrease in overall active listings during the month.  For November 2009 our Spokane Months of Inventory  on the market stood at 8.75 months.    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.  While we all would like to see lower inventory levels what stands out is that November's 2009 supply of properties is moderate as compared to last years supply at this time of year which was in the double digits. 

During November the market continued to show strength in the 250K and below price ranges and no one area showed greater strength then the others.  Enclosed is the Spokane November 2009 Price Breakdown and Market Analysis which will provide further analysis and activity for various price ranges and area's of Spokane.  

Commentary

On a YTD basis through November 2009 the Spokane real estate market has made significant strides to make up for a slow start to the year.  From a closed sales perspective we are down approximately 6.9% in units sold, while pending sales YTD are down only 5.9%.  We continue to see pressure on pricing as on a YTD basis our average price and median prices are down 8.9% and 8.4% respectively.  As you may or may not be aware the first time home buyer tax credit has been extended though April 2010, along with a new tax credit for existing home owners of up to $6,500.  This so called "move up" tax credit is for people who have lived in their existing home for at least 5 out of the last 8 years.  In addition, these new credits raised the income levels of those who qualify as well.  The enclosed IRS link has additional details how this new law can benefit you, IRS Tax Credit Information.

As we approach the end of the year and our weather starts to change (snow) the market has begun to slow down as the focus shifts to family and friends.  We here at the Spokane Real Estate Advisor  would like to wish you and your family a joyous and happy holiday season.  Our family would like to thank you for your support and business and look forward to our continued relationship and success in 2010!

Regards,

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

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