Housing prices across Spokane skyrocket, pricing many out of the market

The recent sale of an $8.4 million Spokane Valley mansion is the most expensive home sold in Spokane last year.

According to data from the Spokane County Assessor through October, the next closest home is a $3.85 million house on the South Hill. That four-bedroom home has more than 5,000 square feet of living space but does not come close to the more than 16,000 square feet on the Spokane Valley property.

In 2024, there were 26 homes in Spokane County that sold for more than $1.5 million. Of those, only nine were above $2 million, and only two homes sold for more than $3 million. Of these most expensive two dozen homes, 18 are located in Spokane, mostly on the South Hill. Another five are in Liberty Lake – with most featuring lakefront property.

Many of these multimillion-dollar homes would have sold for much less a few years ago, Spokane Realtors President Karene Loman said.

“A $2 million home is what would have been a $1 million home before the pandemic,” she said.

Before COVID-19 hit, it was very rare for homes in Spokane to sell for more than $1 million. That is no longer the case, according to Loman.

“A lot of these million-dollar homes would have sold in the $500,000 range before. There are a lot fewer buyers, especially local buyers, who can purchase homes above the million-dollar price point,” she said.

As of the end of November, the median price of a home in Spokane County was $415,900, which was slightly higher than in November 2023, when the median price was $407,750, according to Spokane Realtors.

Tom Hormel, Realtor and designated broker at RE/MAX of Spokane, said the overall market has shifted from a strong seller’s market, where buyers often had to compete with multiple offers, to a very soft seller’s market where homeowners must consider upgrades, fresh paint and other perks to get homes to move.

Sales were up 4.4% over 2023 in November, when 401 homes closed during the month. But the biggest rise came in inventory where the number of available homes jumped by 23.4%.

The 1,224 homes on the market represented a three-month supply, meaning it would take that long to move all the units currently listed.

While that represents a healthier balance in the market, it still falls short of the historical supply of about six months, Hormel said.

“It’s a little bit of a neutral market,” he said. “We are still a little more toward the seller’s market with the low inventory, but we have a little bit of a lack of buyers in the market right now.”

The historic rush to buy homes in Spokane following the pandemic was fueled, and later blunted, by mortgage rates. They went from historic lows to near 40-year highs after the Federal Reserve boosted the rates that banks pay to borrow money.

While the Fed has recently cut interest rates, mortgage rates have been slower to respond.

Those higher costs to borrow money have prompted several buyers to wait as they hoped for greener pastures, he said.

“I still hear it from buyers: ‘I’m waiting for the market to crash,’ ” Hormel said. “That’s not going to happen. The only way that happens is if the U.S. economy crashes. And if that happens, nobody’s going to care” about mortgage rates.

The recent election also seems to have affected sales, he said.

“We had some buyers who last year sat on the fence for the election, one way or the other,” he said. “Whenever there is change, there is fight, flight or freeze. Last year, I think we saw a lot of people freeze who were worried about things in the economy and the political world.

“Now, I think they are fine,” he continued. “We have seen a much brisker pace in January than we have in the last few years. I think this year, we’ll see brisker home sales.”

Those looking for homes in the Spokane area run the gamut. Asked if buyers are seeking location, acreage, certain amenities or price, Hormel said it’s all of the above.

“People are all over the board,” Hormel said. “We still have investors out there purchasing homes for cash. And, a lot of first-time home buyers who are looking. But it’s tougher for first-time home buyers because of the pricing.”

According to Loman, the biggest causes of the housing price increases have been a shortage of houses, high inflation and high interest rates.

“Right now, we don’t have enough houses for all the buyers, and salaries have not kept up with the price of housing, she said.

With the average price being $420,000 with high interest rates, an individual will likely need a yearly salary of more than $100,000 to qualify for the average Spokane home.

“Right now, 80% of Spokane cannot purchase the average Spokane home,” Loman said.

Hormel recently listed a home in Spokane Valley for $475,000 that he previously sold in 2020 for $285,000.

“We’ll be under contract with that one pretty quickly,” he said of the listing. “That’s the kind of appreciation we have seen since 2020.”

A home listed for $1.5 million in 2025 would have sold for about $750,000 a decade ago, he said.

“Back then, that was a high-end home,” Hormel said. “Now, $750,000 is not that crazy. I’m putting two homes on the market this week that are $775,000 and $800,000.”

Those looking for the more expensive properties are typically looking for things that set them apart, Hormel said.

“That market is a little bit different. They are looking for a lot higher-quality stuff in the house,” he said. “When you are in that price range, you better be dialed in. There are a lot of listings in that higher end. Buyers can be more particular.”