It's that time again! Time for your weekly real estate market update for the Spokane County, WA area.
The cold and dreary weather is settling in nicely (not sure if nicely is the best word for this situation ha!) and daylight savings has now happened. Which means for our area, it's now getting dark at 4:30pm. Yikes! That will really cause people to settle into their warm, cozy homes after work and not want to go outside!
Contrary to what the weather is doing though, our market isn't seeing that much of a slowdown. Yes, there has been a decline in sales. Yes, there has been a decline in number of homes coming on the market. But remember, it's all relative. The number of buyers has also declined. So although sales have seen a drop by about 25%, we're still seeing a highly active market. In fact, this time of year is when many buyers actually start looking because they avoid the mad rush in the spring and summer and they have way less competition.
So let's take a look at some specifics about what our market is doing this week:
We're still hovering around 1.3 months of available inventory. To give some context, I'll explain what that actually means. In a balanced market, which is a market where neither buyers nor sellers have an advantage, Spokane's market would have an inventory of 5 and a half months of available inventory/homes for sale. When we talk about months of available inventory, this means that if no other homes came on the market and buyer activity stayed the same, we would run out of homes in five and a half months. So you can see, there's still very much a shortage of available homes. For the purpose of consistency, I only look at homes on a maximum lot of one acre, in Spokane County, and only stick built, because most of the sales in our MLS fit these criteria.
So as you can see, the market is still going strong. This week though, I'm going to focus on explaining the pending ratio, so you can understand it a little bit better. A month ago, we had a pending ratio of 55%. That means that, of all the properties available on the home, 55% of them had accepted offers. At the height of the seller's market madness, we've seen up to 70% pending ratio.
Now fast forward a month to current time. Our pending ratio is still at 54%. Although home sales have dropped almost 25%, when you look at the pending ratio, you can see why the market is still strong and homes are still moving quickly. Just because the number of sales have dropped in the last month or two doesn't mean that activity isn't going strong.
If you have any questions about where the market is headed or any other real estate related questions, don't hesitate to reach out! You can call or text me at 509-844-5843 or email me at firstname.lastname@example.org.