Home Sales Drop 11%, But Prices Keep Rising

December home sales in Spokane dropped 11 percent below year-ago levels, but the total for the month was still the highest since December 1993, according to the Spokane Association of Realtors.

Also, prices continued to increase - by 11 percent over December 1993 and 3 percent over November.

The association’s Multiple Listing Service reported 607 homes sold during the month, down from 682 the year before.

For the year 1994, sales fell 5 percent to 5,686, but the average price rose 9 percent to $109,119. The value of all transactions was $640.3 million, vs. $614.6 million in 1993.

The December average price was $117,202, up from $105,569 in December 1993 and $113,713 in November.

Looking at another measure of demand, the average Spokane home was on the market 66 days in 1994, up only two days from 1993.

Association President Bev Gates said December’s results were good in light of continuing pressure from interest rates, which have increased steadily for the last year.

Buyers are adjusting to the hikes, she said, adding “We’re looking to 1995 as being a good stable market.”

With the help of continued strength in the area’s economy, the year should show a slight improvement over 1994, Gates said.

Three of the four areas tracked by the Multiple Listings Service showed price increases, the northeast being the exception. That is somewhat misleading because boundaries have been redrawn since last year. For December, the result was a drop in price to $81,638 from $85,967 the prior year.

The Spokane Valley was the only area showing an increase in volume, with 163 homes selling, vs. 145 last year.