Spokane home sales continue to increase

We know Spokane readers can be confused by national real estate headlines. Many are wondering how Spokane real estate is performing this year, so we are taking this moment to provide readers with year-to-date market activity (as of the end of May), as tracked by the Spokane Association of REALTORS®.

There were 480 homes sold and closed in May. May sales are up 10.9 percent over April, as the upward trend continues for the fifth month in a row. Year-to-date, 1,803 homes have sold around Spokane county. Contrary to the perception of a slower market, over 1,800 homes have already sold in the local market this year. Home sellers have found the market is positively performing according to their family’s needs. Interestingly, local prices are holding steady. The median sales price of $180,000 is the same as this time last year. The average home price in Spokane as of May is $202,680, which is down just 2.6 percent from 2007, demonstrating that price is holding within a 97 percent range of last year’s average home price.

Currently in Spokane County there are 3,300 homes listed for sale. Together with the 1,800 closings so far, we can confidently say that 2008 presents an active local real estate market. For sellers, though, this year is proving to be a very competitive “buyer’s market.” The year-to-date sales figures tell us that well-priced homes are selling, and the best incentive is always price.

Most homeowners already know they’re competing with banks, auctions and other highly motivated sellers, and weeks may go by without showings as sellers find it difficult to attract a crowd of buyers. Just as important as setting a realistic price, the big question motivated sellers need to ask is “what incentives can I offer to attract buyers?”

Your local REALTOR® can offer valuable suggestions for consideration, such as incorporating cash-equivalent incentives into your home’s overall marketing plan. For example, a seller can offer to pay a year’s worth of property taxes, allowing your REALTOR® to advertise “no taxes for a year!”

Variations include paying one year of homeowner association fees, or the peace of mind a buyer receives if the seller is willing to pre-pay the first year’s home warranty program costs. Other incentives could be a year’s worth of lawn care services, or gift cards to local nurseries, or “free” utilities for a year, all equating to several hundred or several thousand dollars in valuable seller-paid services for the buyer’s benefit.

If a homeowner has set a realistic price, the traditional approach of sequential price reductions may be too painful or just not possible, since negotiations can have an effect on the bottom line proceeds. Instead of lowering the price, offering something of substantial value may be an option to consider. Last month, a Spokane REALTOR®’s flyer offered to sweeten the deal on a golf course home by including a brand new golf cart, saying it comes “fully equipped with a lovely 4,000 square foot home, and its own garage.” Within two weeks, an offer was received and accepted to everyone’s satisfaction, especially the golfer in the family. This was a creative solution that brought the transaction to a successful closing.

While this year’s local real estate market is moving forward, keep in mind that tighter mortgage requirements and the impact of rising fuel prices have created budget concerns for most homeowners. “The biggest challenge is getting the right buyer to ‘hop off the fence’ and engage in negotiations with the seller,” says Rob Higgins, executive vice president of the Spokane Association of REALTORS® for the past 23 years. According to Higgins, “it is helpful to remember that all real estate happens locally. Headlines in other parts of the country are similar to weather reports. You wouldn’t check the weather in Florida before planning a golf game here in Spokane.”

In markets like our current one, experienced REALTORS® offer comprehensive skills in pricing, incentives, marketing and successful negotiating. For current market data, begin the dialogue with your Spokane REALTOR® today.