Will Spokane Home Prices Drop in 2025? What You Need to Know

Spokane’s real estate market has seen rapid growth over the past several years, with escalating home values driven by a mix of urban migration, low housing inventory, and pandemic-related shifts in buyer priorities. But as we look ahead to 2025, uncertainty looms. Interest rate hikes, inflationary pressures, and evolving economic conditions are all creating questions about the future.

My name is Nick Briggs, I am a local Spokane real estate agent and realtor sharing this guide to help buyers and sellers navigate the evolving housing landscape in 2025 with clarity and confidence.

Why 2025 Is a Pivotal Year for Spokane Real Estate

The year 2025 could mark a significant turning point. Economists are closely watching trends that suggest a semi-cooling market nationwide, and Spokane is not immune to these forces. Key indicators such as housing starts, listing durations, and mortgage applications are painting a picture of cautious movement. With the market stabilizing post-pandemic, 2025 may usher in more balanced conditions — neither overly hot nor ice-cold.

Rising interest rates are likely to be one of the strongest influencers, potentially cooling the enthusiasm of first-time buyers while motivating hesitant sellers to act sooner rather than later.

Will Spokane Home Prices Drop in 2025?

This is the big question: will Spokane home prices drop in 2025? Experts suggest a modest price stabilization may be on the horizon. Factors like increased housing supply, affordability ceilings, and federal monetary policies are pointing toward a market correction — not a crash, but defiantly less appreciation than prior years.

According to Zillow and Redfin projections, Spokane may experience a very slight increase in median home prices in 2025 compared to late 2024. While this is not drastic, it does signal a shift from the double-digit growth we’ve seen in recent years.

Buyer sentiment is changing as well. Many prospective homeowners are waiting for better rates or pricing opportunities, while sellers are rethinking their asking prices to remain competitive.

Historical Price Trends in Spokane Real Estate

Looking at the past decade, Spokane has seen strong appreciation — in some years surpassing 15% annual growth. However, like all cyclical markets, highs are eventually followed by a cooldown. Past periods of price correction have proven that Spokane’s real estate remains resilient and recovers steadily.

Comparing to past economic cycles, we observe that while prices may dip, the long-term outlook remains positive for homeowners.

Supply vs Demand: The Balancing Act

Inventory levels are slowly rising, but demand remains relatively strong, especially from out-of-state buyers. However, the pace is changing. New housing developments, rezoning efforts, and relaxed building regulations are contributing to an increase in housing supply.

Meanwhile, population growth continues, albeit at a slower rate, as affordability becomes a concern for newcomers. This evolving balance will heavily influence price trends throughout 2025.

Interest Rates and Affordability in 2025

Interest rates are expected to remain elevated or possibly increase further if inflation remains persistent. Higher borrowing costs reduce affordability and buyer power, which in turn affects how much people can offer — or are willing to pay.

Affordability, already stretched in Spokane, could see a slight improvement if prices decrease. However, the pressure from interest rates might cancel out that gain for many first-time buyers.

Economic Factors Influencing Spokane's Market

The local economy is stable but facing some headwinds. Spokane’s job market — particularly in healthcare, education, and tech — remains a strong foundation. However, rising operational costs for developers and uncertainty around national policy changes could create volatility.

Infrastructure development and increased public investment could provide a cushion, offering hope for long-term market health.

Will a Housing Market Crash Happen in Spokane?

All signs point to a slight market correction, not a crash. Unlike the 2008 housing collapse, today’s lending standards are much stricter, and buyers have stronger credit profiles. There’s also a greater emphasis on equity and less speculative investment.

In short, Spokane is unlikely to experience a sharp collapse in prices. Instead, expect a soft landing — gradual price reductions and slower sales cycles.

What This Means for Homebuyers

If you’ve been priced out or hesitant to buy, 2025 could be a good time to re-enter the market. Slightly lower prices and longer listing times give buyers more room to negotiate. However, keep a close eye on interest rates — they’ll greatly affect your purchasing power.

Working with a trusted local agent can help you identify areas with strong value potential and navigate the complexities of timing your purchase.

What This Means for Home Sellers

Sellers should be prepared for a more competitive landscape. Overpricing will be punished by longer days on market, while strategic pricing and staging will help properties stand out. Consider selling earlier in the year before further price adjustments take place.

Now more than ever, expert guidance from a local realtor is critical.

Best Spokane Neighborhoods to Watch in 2025

Areas like Kendall Yards, South Hill, and Indian Trail continue to show strong community development and consistent demand. Meanwhile, neighborhoods like West Central and parts of Hillyard offer emerging opportunities for appreciation.

Up-and-coming areas are seeing investment in public infrastructure, making them ideal for buyers looking for long-term value.

Tips for Investing in Spokane Real Estate in 2025

For investors, the key will be finding properties with long-term rental potential and manageable upfront costs. Multi-family units, student housing near Gonzaga and Eastern Washington University, and properties in developing corridors will be prime targets.

Diversify your portfolio and work with a realtor who understands the investment side of the Spokane market.

How Working with a Local Spokane Realtor Can Help

Navigating a shifting market is challenging. A local realtor like myself offers real-time insights, neighborhood-specific knowledge, and trusted negotiation skills that national platforms can’t match. I provide personalized advice tailored to your goals — whether you're buying, selling, or investing.

Why Choose Me as Your Spokane Real Estate Agent

With years of experience serving the Spokane area, I’ve helped many clients make confident, informed decisions — even in unpredictable markets. I combine market analysis with real-time data, offer unmatched communication, and advocate for your best interests at every step.

I know Spokane, and I know how to help you succeed in it.

Conclusion: Prepare for Spokane's 2025 Housing Market

2025 is shaping up to be a year of transition in the Spokane real estate market. While slower appreciation is expected, it's likely to be moderate and part of a healthy correction. Buyers will gain negotiating power, and sellers will need to adapt with smarter strategies.

Regardless of your goals, knowledge and preparation are your best tools — and working with a professional can make all the difference.

FAQs

1. Will housing prices in Spokane go up again after 2025? Yes, historically Spokane has rebounded after corrections. While 2025 may see stabilization and slower appreciation, long-term growth is expected.

2. How will interest rates affect Spokane buyers? Higher rates reduce affordability but may lead to price adjustments that help balance the market.

3. Is 2025 a good year to buy property in Spokane? Yes, especially for buyers who are prepared and work with a local expert to find the right opportunities.

4. What areas of Spokane offer the best value? Look to emerging neighborhoods like West Central and traditional favorites like South Hill for strong investment potential.

5. How can I find the right real estate agent in Spokane? Choose someone with local experience, deep market knowledge, and a commitment to personalized service — like me.

About Me

My name is Nick Briggs

Being born and raised in Spokane I grew up knowing what a special place this city is, and it was my dream to help others create a life in this wonderful community by guiding them in real estate. I spent many years in the customer service industry, the experience of listening and communication showed me how much I truly loved helping people. I attended Gonzaga University and earned a Bachelor’s Degree in Business Administration to add to my knowledge of guiding, managing, negotiating, and listening to individuals, helping them achieve their real estate goals. Let me help you achieve yours today!

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