Last year was full of surprises and setbacks. While most of the businesses suffered great loss due to decreased demand, the Spokane real estate market has remained remarkably unscathed by the Coronavirus. This does not mean that the market was left completely untouched by the deadly virus. Instead, it is the speed of its recovery that mitigated the damage.
Spokane is now experiencing an active seller’s market, which means that buyer demand is outpacing the existing supply of available houses. The Spokane housing market is expected to continue to favour sellers. Thanks to historically low mortgage rates, limited inventory, and high demand. Homes are currently being priced higher, making this market more appealing to sellers. So, if you too are planning to invest in Spokane real estate, this article is for you.
Here, we have discussed some more interesting trends that are expected to influence the real estate market in Spokane.
The COVID-19 Effect
The epidemic didn’t strike the local market as hard as it did in every other part of the world. Despite the fact that many markets have effectively remained stagnant over the past few months, Spokane’s real estate has managed to sustain its momentum. As a result, Spokane real estate investors have been able to prosper despite rapid appreciation.
It seems as if new listings and pending home sales have specifically dodged the bullet. Spokane owes this stability to the affordability and demand that currently prevails in its real estate market.
Taking everything into account, it is fair to say that the Spokane real estate market has flourished while others were perishing and there’s no reason to believe that this trend will not continue.
Low Borrowing Cost
The borrowing cost in Spokane is probably as low as it has been at any given point. However, it is worth noting that while rates are relatively low, there has been a rise year-to-date. Subsequently, a valiant effort to cut down the expense premise of the present properties is being put up mortgage rates. In short, effective utilisation of currently prevailing mortgage rates can help investors in saving thousands of dollars.
Effects of Amazon Fulfillment Centre
Amazon is all set to build its new fulfilment centre in Spokane. This implies that Spokane will soon benefit from thousands of new jobs, increased demand, and improved economic activity. This influx of jobs and money is sure to have a huge impact on its real estate market. New employment opportunities will allow locals to take up real estate investments that they were previously unable to do. On the other hand, these opportunities will also attract outsiders to Spokane, which will increase the accommodation demand further.
The demand-supply imbalance
Thanks to its scenic beauty, many people are now moving to Spokane from other congested urban areas of Washington. In addition to this, a lot of employees with extended work from home periods are planning on shifting to Spokane in order to escape crowded cities and the high cost of living. Unfortunately, the supply of housing options in the city is far less than this demand. As per experts, every builder in Spokane is pretty much sold out of stock.
From the characteristics mentioned above, it is easy to understand that while most cities have downgraded forecasts, real estate in Spokane appears ready and willing to deal with all COVID-19 challenges head-on. However, it is important for authorities to take timely actions and manage the demand-supply imbalance. Otherwise, this can turn into a full blown housing crisis which will be extremely difficult to recover from.