Trying to make sense of the Spokane housing market right now? You are not alone. Between shifting mortgage rates, limited inventory, and steady in‑migration, it can feel like three markets at once. In this guide, you will learn how these forces interact across Spokane and nearby North Idaho, what the signals mean for buyers and sellers, and how to time your next move with confidence. Let’s dive in.
One connected Inland Northwest market
Spokane and North Idaho move together more than you might think. Cross‑border commuting, relative affordability, and lifestyle draws create a shared market where trends spill across the state line. Buyers compare neighborhoods in Spokane County with options in Kootenai County, and that comparison shifts demand back and forth.
When you track the market, view the corridor as a system. Inventory decisions or mortgage‑rate changes in Spokane often show up as price and activity changes in Coeur d’Alene and surrounding communities, and vice versa.
Inventory cycles: the pulse of pricing
What months of inventory tells you
Months of inventory shows how quickly the market would sell all active listings at the current sales pace. Fewer months point to a seller’s market. More months point to a buyer’s market. Because listings and construction take time, inventory moves more slowly than buyer demand.
Seasonality matters in Spokane. Listing activity tends to rise in spring and cool in late fall. Compare year‑over‑year to account for seasonal swings so you do not misread a normal winter slowdown as a trend.
Spokane supply drivers to watch
- New construction and building permits for single‑family and multifamily homes
- New and active listings, pending and closed sales, and median days on market
- Lot availability and the age of the housing stock
- Investor activity and flips that increase turnover
These are the levers that shape supply across city neighborhoods and suburban areas. Different parts of the corridor can be in different phases at the same time.
What this means for you
- Sellers: Low months of inventory with strong sale‑to‑list ratios favors you. Price to recent sold comparables and watch absorption rates in your price tier.
- Buyers: Higher months of inventory or longer days on market can open room for concessions. Focus your search where inventory is building within your budget range.
Mortgage rates: how buying power shifts
Why rates matter immediately
Mortgage rates change what you can afford at a given monthly payment. First‑time buyers and those using conforming, FHA, or VA loans feel these shifts most. High‑income or cash buyers are less sensitive, but rates still influence overall demand and pricing.
When rates rise, some buyers pause, which can reduce bidding pressure. When rates ease, sidelined buyers often return. If inventory is tight, even a small demand rebound can push prices and competition higher again.
Practical steps for rate uncertainty
- Get pre‑approved early and update your approval if rates move.
- Ask your lender about rate‑lock options and buydowns.
- Model your budget at two rate points to see how payment risk changes.
- Keep a short list of homes so you can act quickly if rates dip.
Migration: a steady demand engine
Who is moving and why
Recent years brought net in‑migration into the Spokane–North Idaho corridor from larger West Coast metros. Motivations include relative affordability, outdoor amenities, and quality‑of‑life priorities. Remote workers and retirees have been important segments, and they often seek single‑family homes in suburban settings.
Cross‑border dynamics to note
Moves across Spokane County and Kootenai County can shift demand quickly. Differences in state tax structures are one factor many buyers evaluate. Washington does not levy a state income tax, while Idaho does. These considerations, along with property tax levels and local regulations, can affect where buyers land.
Price tiers and neighborhood variation
Entry‑level homes tend to move faster when inventory is tight, since more buyers compete in that range. Upper‑tier and luxury segments can be more sensitive to broader financial markets and discretionary demand. Within the city and suburbs, you will see different speeds and negotiating dynamics by price tier and property type.
For a fair comparison, track months of inventory, days on market, and sale‑to‑list ratios within your target price band. The signals at 350,000 dollars can look very different from those above 800,000 dollars.
Reading the current signals in Spokane
Use a balanced view that mixes short‑run and medium‑run indicators:
- Short‑run: Monthly changes in active listings, new listings, pendings, and days on market
- Medium‑run: 12 to 24‑month trends in median price and inventory by tier
- Financing context: Recent 30‑year fixed‑rate movement and the share of cash vs financed purchases
Remember that closed sales data lags because it reflects deals written 30 to 60 days earlier. Pair monthly MLS stats with a rolling 12‑month view to see the real trajectory.
New construction and the supply outlook
Building permits for single‑family and multifamily homes in Spokane County and Kootenai County help forecast future supply. Permits, starts, and completions move on long timelines, so they ease pressure gradually rather than all at once. Lot availability, construction costs, and local approvals also shape how quickly new homes reach the market.
If you are planning a new‑build purchase, ask about builder timelines and incentives. If you are selling near new construction, track nearby releases that could change local competition.
Timing: when it feels like a buyer or seller market
Low months of inventory combined with strong sale‑to‑list ratios point to seller leverage. The opposite suggests buyers have more room to negotiate. Watch these three together:
- Months of inventory by your price tier
- Median days on market for similar properties
- Percent of list price received on recent sales in your area
Because seasonality can skew month‑to‑month readings, compare the current month to the same month last year. That gives you a clearer signal on the true trend.
Buyer strategies for Spokane and North Idaho
- Clarify your must‑haves and nice‑to‑haves so you can move decisively.
- Compare options across Spokane and Kootenai County to find value.
- Use rate‑lock strategies and consider seller credits for buydowns.
- Target homes with longer days on market for potential concessions.
- Explore new construction for inventory and incentives that fit your budget.
Seller strategies to maximize results
- Price to recent sold comparables and current absorption in your tier.
- Time your listing to align with peak buyer activity, while watching rate moves.
- Improve marketability with focused prep: curb appeal, repairs, and professional presentation.
- Offer strategic concessions if needed to widen the buyer pool without undermining list price.
Data sources and accuracy notes
Rely on local MLS market updates from regional REALTOR associations for near‑real‑time readings, and pair them with permit data from city and county planning departments. Employment data and migration estimates are typically published monthly or annually and may be revised. Expect neighborhood‑level differences across the corridor and use consistent geography when comparing city, county, or metro trends.
Final take
You can read the Spokane market confidently when you watch the three core drivers together: inventory cycles, mortgage rates, and migration. Short‑run shifts in rates move demand quickly, while new construction and listing activity change supply more slowly. Across the Idaho and Washington line, these forces interact to set price pressure and negotiating leverage.
If you want a neighborhood‑level read and a plan tailored to your goals, connect with a local advisor who pairs data with practical strategy. For a conversation about timing, pricing, and your next steps in Spokane or North Idaho, reach out to Robert Jacobs II. Request a free home valuation.
FAQs
Is Spokane a buyer’s or seller’s market right now?
- It depends on your price tier and location; check months of inventory, days on market, and sale‑to‑list ratios for similar homes over the last 3 to 6 months.
How do mortgage rates affect my Spokane buying power?
- Rates change your maximum purchase price at a given payment; model your budget at two rate scenarios, and consider locks or buydowns to manage risk.
Are people still moving into Spokane and North Idaho?
- Yes, net in‑migration remains an important demand driver, with movers from larger West Coast metros and a mix of remote workers and retirees.
Will new construction ease Spokane home prices soon?
- New supply helps over time, but permits, starts, and completions have long lead times, so effects are gradual and vary by neighborhood and price point.
Should I buy in Spokane or nearby Kootenai County?
- Compare total cost, inventory, commute, and community fit across both areas; cross‑border differences, including state taxes, can influence the best choice for you.
What is the best time of year to list a home in Spokane?
- Spring often brings more buyers and listings, but seasonality varies; align your timing with current absorption and rate trends for your price tier.
