Effective Date:
12-31-2024
Publish Date:
01-27-2025
Analyst:
Cody Kerr
Coldwell Banker Tomlinson
4102 S Regal St, Ste 201
Spokane, WA 99223
MARKET AREA
Green Bluff Market Area Housing Trends
What follows is a survey of housing characteristics from the market area showing the most common year-built eras, site sizes, and typical house sizes over the last five years surveyed from the Spokane Multiple Listing Service (SMLS) for the Green Bluff real estate market area.
OVERALL MARKET AREA CONDITIONS
The data summarized below are from the competing market area for Green Bluff from the Spokane Multiple Listing Service (SMLS) over the last 12 months prior to the effective date of 12-31-2024.
Sales & Listings
Sales Volume
There were a total of 63 sales, which is 5.25 sales per month. Of these total sales, there were 0 distressed sales (bank owned, short-sale) reported in the Spokane Multiple Listing Service (SMLS), and there were 63 non-distressed single-family sales.
Of these 63 non-distressed sales, 61 were resales, and 2 were new construction.
The price summaries of these sales are in the following table:
| Single-family Resale and New Construction Analysis | ||
|---|---|---|
| Subject's Market - Prior 12 Months | ||
| Resales | New Construction |
|
| Sale Numbers | ||
| # of Sales | 61 | 2 |
| Sales Per Month | 5.08 | 0.17 |
| Sale Price Summaries | ||
| Min Sale Price | $310,000 | $1,523,554 |
| Median Sale Price | $560,000 | $1,746,777 |
| Average Sale Price | $603,901 | $1,746,777 |
| Max Sale Price | $1,450,000 | $1,970,000 |
Listing Activity
Currently in this market, there are more active listings that do not have a contract than pending listings with a contract. Typically, more active listings than pending indicates a buyer’s market. See the chart below with the pending to active percentages.
Odds of Selling
Not all properties that are listed for sale will actually sell. When looking at listings compared to sales in this market, you can see the historical chances of selling. The following chart shows the chances of selling for a property for each month over the last year once it is listed for sale.
Below are the overall odds of selling for recent years in the subject’s market area. With 2024 showing that there is a 52% chance that a property would sell, this also means that 48% of all properties listed DID NOT SELL!
| Odds of Selling by Year | |
|---|---|
| Market Area for Green Bluff | |
| Year | Odds of Selling |
| 2023 | 58% |
| 2024 | 52% |
Property Values / Sale Prices
Annual Price Trends
Prices in this market have increased over the last several years through 2022 but have declined since 2022 to 2023.
Monthly Price Trends
Sale Price Distribution (Resales & New Construction)
The sale price distribution for all of the resale and new construction homes (if any) in this market area is in the next graph.
List Price to Sale Price (LPSP) Ratios
The median LPSP ratios trend for the last year is in the following graph. 100% means a property sold at list price. Less than 100% sold less than list price. More than 100% sold above list price.
Inventory - Demand/Supply
On the effective date of 12-31-2024, there was a 1.4-month supply of listings, which is about a 43-day supply of homes for sale. This means that if no more houses were listed for sale, all of the homes on the market would sell in 43 days or less.
Typically, this market has a lower supply of houses for sale during the colder months and sees an increase in listing coming on the market in spring and summer. See the following graph that shows the inventory trends.
When the inventory/amount of listings is low, it can be a good time to sell because there is limited competition and buyers have few choices.
Inventory by Price Range
Various price ranges have different supplies of housing. In this market area, prices below $1,100,000 have fewer houses for sale, which helps create more competition. See the following graph that shows the inventories by price ranges.
Marketing Times
The following is a summary of how long it takes to get an offer from the day a property is listed for sale, which is called days on market (DOM).
| Market Area DOM Summary - How long does it take to get an offer? | ||
|---|---|---|
| Time period: Prior 12 months | ||
| DOM Groups | # of Sales | % of Properties |
| 0-60 | 53 | 84.1% |
| 60-120 | 7 | 11.1% |
| 120-162 | 3 | 4.8% |
| Total | 63 | 100.0% |
In the last 12 months prior to the effective date, 84% of properties are getting an offer within 0-60 days on the market. Another 11% of properties are getting an offer within 60-120 days on the market, which means that 95% of properties are getting an offer in 120 days or less.
With the majority of properties getting an offer within 60 days on market, if a listing is on the market longer than 60 days, it is probably overpriced.
Current Days on Market Trends
The next chart shows that more sales in prior months were getting an offer within 60 days. Pending and Active listings show that days on market have increased meaning that it’s taking longer for properties to get an offer once they’re listed for sale.
Time to Closing
From the day a property is listed for sale, the time it takes to get to closing can take up to 4.5 months in this current market. Most properties are closing in 3 months or less, but with marketing times taking longer, this is extending the time it can take to get to the closing table when you can expect to get the proceeds from the sale of your property.
How Buyers are Paying for Property
Effect of Increasing Loan Rates
Property prices are heavily influenced by current loan rates. When loan interest rates are high, it makes property less affordable for buyers. When buyers can’t afford property, this results in some getting out of the real estate market. Eventually, there is less demand for the properties that are listed for sale. If buyers aren’t competing with each other driving the prices up, eventually the market dynamic shifts to sellers competing with each other to sell their property, which results in pushing the prices down.
Payment Type – Cash vs. Loan
Most buyers purchase property with a loan in this market. Because most loans require an appraisal, if a listing is overpriced, and the appraised opinion of value is less than the contract price in the offer, the chances of the property selling at the high contract price are low, in fact, a 17% chance or less, which is the percentage of cash buyers in the subject property’s market.
In most cases, a buyer will pay with a loan, which means there will likely be an appraisal. In this market area, the previous chart showed there is an 83% likelihood that there will be a loan and an appraisal.
Loan Price Limits
Some loans have more strict lending requirements than others. Also, some loans have price limits, like FHA. For 2024, the current FHA loan limit in Spokane County is $524,2251. If the loan amount of property is over this FHA limit, then a dwelling will not qualify for FHA financing since the loan value would be higher than what FHA allows for a loan amount.
Loan Safety Requirements
Some loans have very specific safety requirements, like FHA or VA. When a buyer uses these types of loans, the appraiser checks the property for compliance with what’s generally called, “Minimum Property Requirements,” or MPRs for short. Features like the roof, water system, electrical system, exterior paint, etc. all have to meet rigorous safety requirements.
If a property doesn’t pass these safety requirements, either the seller or the buyer will have to make repairs or alterations to fix it so it passes. Otherwise, the lender won’t loan on the property.
Also, if the seller refuses to fix these items, and the buyer is unwilling or unable to fix them, then the lender will not loan on the property and the sale will not be able to close.
The following chart shows the most common loan types in this market:
MARKET CONDITIONS - CONCLUDING REMARKS
Property Prices
Sale prices declined from 2023 to 2024 by about 3.0% when measuring median sale prices. From January 2024 to the end of the year, stick-build home median sale prices increased by 23%. Manufactured home prices decreased in 2024 by about 13%.
List Price to Sale Price Ratios
Most properties are selling below their original list price. Some of this is due to properties starting on the market that are overpriced, and some of it is due to loan rates, which are still high enough to make some properties unaffordable for buyers. The result is less demand and more properties for sale than there are buyers. Sellers end up attempting to attract buyers to purchase their property, which is often through price reductions to make the property more affordable to result in a sale.
Days on Market and Inventory
Recent sales in the last three months are indicating that 86% of properties are getting an offer within 90 days with a second large group getting an offer within 90-180 days. Most of the current listings have been on the market 120 days or more. This means that it is taking longer for a property to get an offer once it is on the market. The overall supply of properties is recently trending toward a buyer’s market.
If a property is listed for sale at fair market value, it may take less time to get an offer and there is a greater likelihood of selling without price reductions or, at least, with fewer price reductions in this market at this time.
Loan Rates
The lack of significant appreciation in prices like years prior is due to increasing loan interest rates. While rates are still high, because many property owners currently have 2% - 4% interest rates from prior purchases or refinances, many are reluctant to sell at this time. This creates a shortage of properties for sale, but there are still active buyers in the market. This supply shortage and stable demand has helped to stabilize prices despite the increasing loan interest rates.
Increased loan rates have made property less affordable for buyers. According to loan trends from Freddie Mac2, loan rates peaked in Oct 2023 at 7.79%. This is over a 4% interest rate increase from the beginning of 2022. This has been a major contributor to declining sale prices and increasing marketing times.
The higher loan rates result in many buyers being priced out of the market, thus reducing the demand for housing. As a result, with less demand, there is less upward pressure on prices due to a lack of or reduced competition for homes. Recently, loan rates have fluctuated and are at 6.91%.
The following graph from Freddie Mac shows the trend in loan rates since Jan 2022.
Historically, loan rates have averaged 7.7% since 1971. Since 2001, loan rates have been below this almost the entire time. However, in 2001 the national median home price was $174,100 compared to the national median home price in 2024 of $420,000.
Conclusion
Market Conditions Green Bluff 2024
Because loan interest rates have increased and are currently increasing, properties have become less affordable for buyers in this market. This has reduced demand because several buyers have left the market due to lack of affordability. With the reduced demand, property prices aren’t appreciating like they were in prior years. Over the last 12 months, prices of stick-built homes have increased, which prices for manufactured homes has decreased.
Days on market for current listings are longer than previous sales. This indicates it is taking longer for properties to get an offer once they are on the market. Extended marketing times typically result in price reductions from the original list price. Overall, these are indications that this market is closer to a state of balance and shifting more toward a buyer’s market.
Cody Kerr
Coldwell Banker Tomlinson
4102 S Regal St, Ste 201
Spokane, WA 99223 509.944-5071
codykerr.realestate@gmail.com
www.codykerr.com
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