SPOKANE, Wash — The last two years have been a whirlwind for Spokane's real estate market. But now there's speculation of a real estate correction for the Lilac City.
The Lilac City’s real estate market has been going full-steam ahead during the course of the pandemic and was characterized by both a huge demand & sky-rocketing housing prices.
Kristi Morris, a broker with Windermere Manito, described the past two years as being “hot, hot, hot,” while Melissa Murphy, owner of Prime Real Estate Group, remembered it being “a crazy, crazy time.”
Murphy remembered some homes getting up to 15 to 20 offers during that time: “People were scrambling to get their foot in any door. We had lines of traffic out for showings as people were cramming to get in in short timelines and get offers submitted."
Some of the reasons behind the market drive were low interest rates and low inventory.
But now there's a shift starting to be felt.
According to Moody's Analytics, as reported by Fortune Magazine, they're forecasting Spokane to be in the top five markets for housing price drops, with a forecasted drop of 5.22% for 2023 and a 4.11% drop for 2024.
The recent spike in mortgage interest rates is expected to be a part of the equation for the shift. But Morris added fatigue could also be an issue.
"I think people are just tired of having to fight so hard for a house that they want,” she said.
As to whether the forecast from Moody's comes true, both Murphy and Morris said it's hard to say since there's no crystal ball to help figure out the future.
However, both do think the Spokane housing market is becoming more stable.
"It's still a seller's market,” said Morris, “But you can kind of feel the needle just kind of edging its way toward more of a balance market.”
Murphy said, “What we had was so abnormal and so crazy. I've heard it as this way: It's kind of like a party. You can't party all night long, right? Morning has to come. You have to go back to a normal state. It can't be that crazy for that long."
Other cities listed in the top five markets for housing price drops in 2023 include Reno, Nev. and Honolulu, Hawaii.
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