Year in Review Market Update – 2022
2021 was a record year not only for our area, but the entire United States. Spokane saw the highest appreciation market it’s ever seen with many home sellers receiving offers much above asking, and many home buyers left submitting often a dozen offers until they finally got one accepted. Let’s dig into some of the numbers of this record breaking year!
This year we saw nine thousand and sixteen homes list for sale which was down four percent from 2020 when we saw nine thousand four hundred and eighty seven homes go for sale. This was our first major issue in 2021. Even though that doesn’t seem like a huge difference, this number has been on a downward trend since twenty seventeen when we saw a high of ten thousand six hundred and thirty five homes hit the market that year. This caused increasing pressure on an already low inventory market.
And even though the number of homes sold went down by four percent, the number of homes that successfully closed went up by about one percent for a total of eight thousand two hundred and thirty eight homes successfully closing escrow. So, even in a white hot market like this past year, about seven hundred and fifty homes never sold most likely because they were asking a ridiculous price for the market or a life circumstance changed.
One year ago, the average price of homes sold was three hundred twenty one thousand, three hundred and eleven dollars. Today the average home price is four hundred thousand, six hundred and twelve dollars which is a year over year increase of twenty four point seven percent. This is just nuts that the average homeowner in Spokane made double the average salary here in just one year of owning their home.
I worry that many people will become comfortable with this amount and expect this every year. The stock market also had an incredible year and we hope that people will adjust their expectations for price growth in the next five to ten years as it will most likely slow down - key word slow, not collapse. People will feel like the market is crashing when it is only slowing down and normalizing from what has been a record breaking year so do not let these people scare you.
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Inventory remains low as we go into 2022 with only 248 homes and condos on less than one acre currently available, representing about a 10 day supply.
This year the most expensive residential home that sold, meaning any home on less than one acre in Spokane county - was this one right here. Originally listed for one point eight million, this house sold for a quarter of a million dollars over asking, landing at two million, fifty thousand, five hundred dollars.
Of all the residential listings this year in Spokane county, sixty five sold for over a million dollars.
And now to include the most expensive home sold of all homes in Spokane county, including those with as many acres as the eye can see, this home was originally listed for eight million dollars and sold for six million dollars - just a casual nine thousand sq. feet on sixty one acres.
In total, Spokane saw over 4 trillion dollars of real estate sold this year with an average of 3.6 listings per agent in Spokane, which is not a lot!
Briefly - 2022 is set to be another market that is good for home sellers, and hopefully slightly better for buyers. Home buyers' inventory is anticipated to go up slightly, but home prices will continue to go up and interest rates have been proposed to go up 4 times this year and end the year around three point seven percent. This is still historically very low, but significantly higher than a year ago.
Sellers, now is your time. This is a great market for downsizers, someone wanting to use their equity to make an investment in a rental property, or if you’re moving from the area. Your sale will be successful with the right pricing strategy and marketing from a professional. Inventory will pick up, so now is your chance to have your home easily stand out from the crowd.