Spokane Home Prices Hit $465K Peak Amid Surging Inventory Shift

SPOKANE, Wash. -- The Spokane real estate market surged to new heights in May 2025, with median home prices reaching $464,975, up 6.9% from the prior year and 6.4% from April, according to local real estate analysis from the Halsted Home Team. This marked the highest level since June 2022, driven by strong demand for single-family homes amid Eastern Washington's appeal to remote workers and families seeking affordability compared to Western Washington hubs like Seattle. Closed sales year-to-date through May 2025 totaled 2,592, a 2.8% increase from 2024, while pending sales rose 6.3%, per Spokane Association of REALTORS data reflected in market reports.

Inventory tells a contrasting story, ballooning to 3,985 active listings -- up 18% year-over-year and nearing 2019 levels -- creating 2.7 months' supply, short of the balanced 6-month mark. This uptick from January 2025's 949 units, a 33% jump from the prior year, has extended average days on market to 12 from 9, giving cautious buyers more leverage amid persistent high mortgage rates. In March 2026, median prices dipped slightly to $350,000, down 1.4% year-over-year, with homes selling in 29 days and 227 sales recorded, hinting at seasonal softening per Redfin data.

Experts like those at Sammamish Mortgage forecast modest 3.6% home value growth through late 2025, supported by limited supply in premium segments and potential rate relief, though average prices stood at $404,211 with 42.9% of listings seeing cuts. Zillow projected just 0.9% growth from January 2025 to 2026, underscoring resilience despite national medians at $407,500. Spokane REALTORS warn of an affordability crunch, as prices strain first-time buyers in neighborhoods like South Hill and Five Mile Prairie, where demand remains fierce.

The market's bifurcation -- rapid sales under $400,000 versus lingering higher-end listings -- mirrors broader Eastern Washington trends, with Spokane's relative value drawing inflows from costlier markets. As inventory climbs toward 2.8-3 months' supply, buyers hold price-to-list ratios at 99.7%, down slightly, while 35.4% still sell above ask. Local agents anticipate momentum into 2026, contingent on federal rate moves.