Housing market leveling out
Last updated 6/23/2022 at 8:29am
CHENEY – In the past couple of years, the Inland Northwest has seen the housing market in places like Spokane and Coeur d'Alene reach record highs. Cheney has also seen the boom in the housing market.
This year, the market has started leveling out but the average selling price for a home in Cheney hovers around $425,000.
"Overall, the housing market is still a seller's market but it has seen significant changes in the last few weeks," said Danielle LaBar, owner of Touchstone Real Estate and active member of the real estate business for over 18 years.
LaBar said the effects of climbing interest rates the last couple of months haven't been seen in the market until recently.
"People aren't able to afford what they previously could," she said. "People lock interest rates so they don't have to deal with the fluctuation of interest rates and people had their rates locked before the interest rates shot up."
LaBar said the increased interest rates has created a the stall in the housing market. It's still a seller's market but listings are spending more time on the market.
"The average price has stayed the same but the days on the market have increased. We've seen some prices decrease but that's because we're not used to longer days on the market," she said. "What used to sell in three to four days is now selling in 15-20 days."
Still, the local housing market remains active as high prices in Spokane and Coeur d'Alene and around the Northwest attract buyers to places like Cheney.
"I think we'll see continued growth for the foreseeable future. There are people coming here from places like Seattle and Portland- our market is more affordable for them," she said.
LaBar said the attraction to a housing market like Cheney could be good for small businesses and a general push for growth of the small rural town.
Owner and Designated Broker of Cheney Realty Benji Estrellado has been in real estate for nearly 35 years. He said the balance coming to the housing market is neither a good or a bad thing.
"We're starting to see price reductions and incentive bonuses for realtors. Prices are stabilizing more and homes are staying on the market a little longer," he said. "It's becoming a level field where there's actual negotiations going on to benefit both the buyer and the seller."
What's happening right now isn't particularly new.
Estrellado said the highs, lows and levels of the real estate market are cyclical but isn't predicting a drop like the one in 2008-2009.
"The interest rates dropped so far down, everyone was able to afford a higher mortgage and now with interest rates increasing, people can't afford those high payments now," he said. "I don't think we're going to see drops like '08 and '09."
The Spokane Multiple List Service (SMLS) said from Jan. 1, 2022 to June 16 there have only been 34 closed sales inside of Cheney proper. In the same date range and area for last year, there were 53 closed sales.
For the first half of this year, SMLS lists the average number of days on the market as 13 whereas a year ago, that number was seven.
The average listing price for closed sales in the beginning of this year is $356,250 with a sold median of $373,500.
For listings that are currently on the market, the average listing price is $425,863.
Estrellado said the best advice that he could give to people who want to buy in this market now and in the future is to keep a good credit score- good credit means lower interest rates.
"As of today [June 16] there are only 10 active residential houses listed on the market inside of Cheney," Estrellado said. "Interest rates will eventually come down a little."
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