Market Activity
July 2009 Activity as reported by the Spokane Association of Realtors resulted in closed sales of 537 units during the month which is up 37 units from closed sales as reported in June 2009 Activity . This increase of 37 units represents a 7.4% increase in units sold as compared to June 2009. In comparison to July 2008 closed sales of 584 units the market is down 47 units which equates to an 8% decrease this year vs. last year. For July 2009 pending sales reported were 467 units, which is down 52 units as compared to June 2009 pending sales of 519 units, this equates to a 10% decrease from month to month. In comparison to July 2009 pending sales of 544 units we are down 77 units, a 14.2% decrease.
During the month of July 2009 the average sales price in Spokane County was $194,324 and the median sales price was $176,000. This is in comparison to June's average and median prices of $192,970 and $177,500 respectively. Thus on a month to month basis the average price was up $1,354 per unit, a .7% increase, while the median price was down $1,500 per unit a .85% decrease. In comparison to July 2008 our average price is down 12.3%, while the median price is down 7.4% on a year vs. year basis.
Spokane Inventory for the month of July 2009 stood at 3,412 units, which is up 130 units as compared to June 2009, this is a 4% increase month over month. Compared to July 2008 inventory of 3,456 units we are down 1.3% compared to this time last year. This is the eighth month in a row that inventory this year is less then inventory the same month a year ago. So for every month in 2009 the inventory level has been lower then the same month in 2008. Thus we see the market adjusting itself as the theory of supply and demand would suggest.
While inventory levels are adjusting to the market demands, in July our Spokane market absorption rate moved downward to 13.69% from June's and 2009's highest rate of 15.81%. While almost 14% absorption in this current economic climate is nothing to complain about, we are entering the portion of our market cycle where the absorption rate starts a downward trend to its typical lows in December and January. This decrease in absorption rate resulted in Spokane months of inventory on the market during July to stand at 7.31 months. This is an increase of 15.6% compared to June's months of inventory available of 6.32 months. Thus at the current absorption rate of 13.69% and assuming no new listings come on the market, it would take us 7.31 months to sell the current inventory of 3,412 units.
While the beginning of the year got off to a rough start not all has been lost. We continue to experience good activity related to sales and pending sales in specific price ranges and areas of Spokane. In specific area's and prices ranges we have seen absorption rates above 20%. However, at the upper end we continue to see fewer buyers and more competition. 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 July 2009 Price Breakdown and Market Analysis which will provide further analysis ;and activity for various price ranges and area's of Spokane.
Commentary
With the economy starting to show some health and life we continue to see demand and activity in our local market. The first time home buyer credit is currently due to expire on December 1, 2009 so depending what the government decides to do with this credit will have an impact on how the real estate market proceeds. The good news is that value is out there to be had and with the right guidance, analysis and diligence there are excellent opportunities.
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!
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