Valued Friends

As we finish up Fall and head into Winter the Spokane Real Estate Market is holding strong.  September results showed good activity and momentum.   Enclosed for your enjoyment is the September 2009 Spokane WA Real Estate Market update . . . 

Market Activity

September 2009 Activity  as reported by the Spokane Association of Realtors resulted in closed sales of 440 units during the month which is down 48 units from closed sales as reported in August 2009 Activity .  This decrease of 48 units represents a 10.9% decrease in units sold as compared to August 2009.  In comparison to September 2008 which reported closed sales of 467 units the market is down 27 units which equates to a 5.8% decrease this year vs. last year.  During the month of September 2009 pending sales reported were 473 units, which is UP 10 units as compared to August 2009 pending sales of 463 units, this equates to a 2.2% increase from month to month.  In comparison to September 2009 which reported pending sales of 418 units we are up 55 units, a 13.2% increase this year vs. last year.  As pending sales are a current sign of market velocity this is a positive note.  

During the month of September 2009 the average sales price in Spokane County  was $179,636 and the median sales price was $160,000.  This is in comparison to August's average and median prices of $189,711 and $169,975 respectively.  On a month to month basis the average price was down $10,075 per unit, a 5.2% decrease, while the median price was down $9,975 per unit a 5.9% decrease.  In comparison to September 2008 our average price is down 10.8%, while the median price is down 8.5% on a year vs. year basis.

Spokane Inventory  for the month of September 2009 stood at 3,417 units, which is down 49 units as compared to August 2009, this is a  1.4% decrease month over month.  Compared to September 2008 inventory of 3,386 units we are up 31 units compared to this time last year.  This is the  first time in nine months that the inventory this year is higher the the inventory for the same month a year ago.   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.  September looks to being following our seasonal cycle as expected.

While inventory levels are adjusting to the market demands, in September our Spokane Market Absorption Rate moved slightly higher to 13.84% from August's rate of 13.36%.  The combination of higher pending sales and lower inventory levels contributed to this slight increase.  During September 2009 our Spokane Months of Inventory  on the market stood at 7.22 months.    This tells us the overall market is still favoring the buyer and this is further supported by the decrease in both average and median price we saw in the month of September.  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 September 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 September 2009 the Spokane real estate market is holding its own.  From a closed sales perspective we are down approximately 15.5% in units sold, while pending sales YTD are down only 9.7%.  We are seeing some pressure on pricing as on a YTD basis our average price and median prices are down 7.7% and 7.2% respectively.  The current first time home buyer tax credit (due to expire on Nov 30, 2009) along with an improving economy have assisted in keeping our market somewhat stable.  If interest rates continue to remain at their low levels and if the government decides to extend or replace the first time home buyer credit in our market our hope is that our winter season won't be as disasterous as last year's was.  In addition, there is some discussion that the new/extended tax credit my not only be for first time home buyers, but any home buyer.  This would be a major impact to our market allowing current sellers to move up even though they may take less equity on the sale of their home, knowing on the purchase side they can potentially make it up.  Stay tuned for more details!

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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