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Home Home Spokane Blog Spokane WA Real Estate Market Update September 2010
Spokane WA Real Estate Market Update September 2010 Print E-mail

Despite record low interest rates and plenty of properties to chose from the September Spokane Real Estate market results are in and they are not as encouraging as one would hope. While the low activity makes it difficult on sellers, for buyers there are a wealth of opportunities.

September 2010 Activity as reported by the Spokane Association of Realtors resulted in closed sales of  317 units during the month which is down 27 units from closed sales as reported in August 2010 Market Activity .  This decrease of 27  units represents a 7.8% decrease in units sold as compared to August 2010.  In comparison to September 2009 which reported closed sales of 443 units the market is down 126 units which equates to a 28.4% decrease this year vs. last year.  September now becomes the THIRD month in a row where closed residential sales were less then sales during the same month a year ago.

During the month of September 2010 pending sales reported was 266 units, which is down 88 units as compared to August's 2010 pending sales of 354 units, this equates to an 24.9% decrease from month to month.  This reverses the trend in August where pending sales actually increased vs. the prior month.  In comparison to September 2009 which reported pending sales of 463 units the market is down 197 units, a 42.5% decrease this year vs. last year.

During the month of September 2010 the average & median sale prices in Spokane County were $182,264 and $162,000 respectively.  This is in comparison to August's average and median sales prices of $191,174 and $170,000 respectively.  In comparison to September 2009 the  average price is up 1.5% while the median price is up 1.25%.  Overall the average and median price points in Spokane have held up despite the less then stellar volume and activity.

Spokane Inventory for the month of September 2010 stood at 3,444 units, which is down 65 units as compared to August 2010.  Compared to September 2009 where inventory stood at 3,417, units are up 27 units compared to this time last year, this is a .8% increase.  As we can see from the historical trend Spokane Market Inventory Levels inventory levels are continuing on their downward trend as we head into the last quarter of the year.  This is consistent with what we have been predicting.

In September our Spokane Market Absorption Rate decreased from 10.09% in August to 7.72%.  This 23% decrease in absorption rate was directly related to the significant decrease in pending sales in September.  During September 2010 our Spokane Months of Inventory on the market stood at 12.95 months, which is a 30.62% increase crease from August's 9.91 months of inventory.   As you can see in the  Spokane Inventory Supply Analysis when the months of inventory level is above 9 the market is not favorable for sellers.  All the power is currently with the buyers and looks to remain that way for the next few months based on historical experience.

September absorption rate is a sharp decline from August's results.  It reverses the trend of an increase in absorption rate and while inventory levels are on the decline the pending sales number is not looking good.  While prices continue to remain stable in September the Spokane Market Breakdown and Price Analysis shows single level absorption rates in all the major areas.  In the South we see a dangerously low rate of 6%, while in the Valley the 375K - 399K range showed a nice double digit absorption rate and in the North the 250K - 299K range showed good strength.

Commentary

Based on the encouraging August results I would have to say that the September results were not as positive as one might expect.  While closed sales from month to month were not too bad, the concern is that pending sales (which measures market velocity and current activity) was down well over 42%.  Despite record low interest rates and plenty of inventory, buyers are still hesitant to make offers on properties.  Looking at the Spokane Market Pending Sales trend we see that the downward trend in pending sales (since April) continues and heading into winter this is not a good sign.

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.

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Contact John

John Creighton
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
Fax (509) 924-4070                      
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