Valued Clients, Friends and Prospects

The Spokane Real Estate Market is alive and well.   October results are in and we continue to see strength and fortitude in the local market.   Enclosed please find our monthly newsletter and if you have any additional questions, concerns or comments please don't hesitate to contuct us. 

Market Activity

October 2009 Activity  as reported by the Spokane Association of Realtors resulted in closed sales of 507 units during the month which is up 67 units from closed sales as reported in September 2009 Market Activity.  This increase of 67 units represents a 15.2% increase in units sold as compared to September 2009.  In comparison to October 2008 which reported closed sales of 441 units the market is up 66 units which equates to a 15%increase this year vs. last year.  During the month of October 2009 pending sales reported were 481 units, which is up 8 units as compared to September 2009 pending sales of 473 units, this equates to a 1.7% increase from month to month.  In comparison to October 2008 which reported pending sales of 363 units the market is up 118 units, a 32.5% increase this year vs. last year.   This is a sign that the first time home buyer tax credit along with low interest rates are contributing to make the last quarter of 2009 much stronger then the last quarter of 2008.   

During the month of October 2009 the average sales price in Spokane County  was $177,072 and the median sales price was $164,900.  This is in comparison to September's average and median prices of $179,636 and $160,000 respectively.  On a month to month basis the average price was down $2,564 per unit, a 1.4% decrease, while the median price was up $4,900 per unit a 3% increase.  In comparison to October 2008 our average price is down 12.4%, while the median price is down 7.1% on a year vs. year basis.

Spokane Inventory  for the month of October 2009 stood at 3,143 units, which is down 274 units as compared to September 2009, this is an 8% decrease month over month.  Compared to October 2008  where inventory stood at 3,173 units we are down 30 units compared to this time last year, which is less then a 1% decrease.   We are back on track in regards to our inventory curve where the inventory this year is lower then the inventory for the same month a year ago.   As we can see from a historical perspective the Spokane Market Inventory Levels are on the downward cycle, just as we would have predicted.

In October our Spokane Market Absorption Rate showed great strength by moving upwards to 15.30% from September's rate of 13.84%.  This absorption rate is the highest we have seen since June 2009.  The combination of higher pending sales, lower inventory levels and the ongoing economic stimulus all contributed to this significant increase.  During October 2009 our Spokane Months of Inventory  on the market stood at 6.53 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. What stands out is that October is the first month since June of this year where the months of inventory was below 7 months.   The improvement this month in both the absorption rate and months of inventory are additional signs that the Spokane real estate market continues to show improvement. 

The current absorption rates and months of inventory are significantly improved as compared to 2008.  While they are still not at levels we saw in 2007, in light of the current economic condition we must count our blessings.  During October the market showed significant strength in the North and South, with some double digit absorption rates all the way up in the 350K to 375K range.  Enclosed is the Spokane October 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 October 2009 the Spokane real estate market has shown great fortitude and resiliency.  From a closed sales perspective we are down approximately 12.4% in units sold, while pending sales YTD are down only 8.4%.  We continue to see pressure on pricing as on a YTD basis our average price and median prices are down 8.4% and 8.1% respectively.  On the bright side 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. 

As the weather begins to turn and the holidays approach we are in a much better position then we were this time last year.   It will be interesting to see how these new laws, continued low interest rates and the economy hold up over the next few months, in anticipation of the seasonal spring run up in the real estate market.  

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!

Regards,

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

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