The real estate market in Spokane, Spokane Valley, and Liberty Lake experienced notable shifts in 2024. With inventory dynamics, fluctuating interest rates, and changes in buyer behavior, the year offered valuable insights into regional trends. Let’s take a closer look at what shaped the market in 2024 and what’s projected for 2025.

Spokane Housing Market in 2024

Spokane saw a moderate increase in housing prices in 2024, with a year-over-year appreciation of 6.2%. The median home price rose to $395,000, driven by steady demand and limited inventory.

• Inventory Levels: Inventory remained tight, with a 12% decrease compared to 2023. This scarcity intensified competition among buyers, especially for homes in the $300,000 to $450,000 range.
• Interest Rates: Mortgage rates fluctuated between 6.5% and 7.2%, leading to more cautious buyer behavior.
• Buyer Demographics: Millennials and Gen X buyers dominated the market, with many relocating for Spokane’s lifestyle benefits, such as outdoor recreation and lower cost of living compared to larger cities.

Spokane Valley: A Growing Suburban Hub

Spokane Valley experienced robust growth in 2024, fueled by new developments and increasing interest from families seeking larger homes at more affordable prices.

• Median Home Price: The median price in Spokane Valley rose to $365,000, a 7% increase from the previous year.
• New Construction: Builders delivered several new developments targeting mid-range buyers, adding 150+ new homes to the market.
• Rental Market: Rental demand surged, pushing average rents up by 8% year-over-year.

Liberty Lake: A Luxurious Market

Liberty Lake continued to attract high-end buyers with its upscale amenities, golf courses, and proximity to Spokane and Coeur d'Alene.

• Median Home Price: Liberty Lake’s median price reached $550,000, a 4.5% increase from 2023.
• Luxury Market Trends: Homes priced above $800,000 saw increased activity, driven by out-of-state buyers.
• Community Appeal: The area’s lifestyle amenities, including waterfront properties and outdoor activities, kept demand steady despite rising prices.

Projections for 2025

Looking ahead, the housing market in Spokane, Spokane Valley, and Liberty Lake is expected to stabilize, with modest price growth and increased inventory levels.

1. Price Growth: Analysts forecast a 4-5% increase in median home prices across the region, with Spokane Valley likely leading due to its expanding inventory.
2. Inventory Trends: Builders are expected to add more units, particularly in Spokane Valley and Liberty Lake. Spokane may see modest improvements in inventory as sellers adapt to current market conditions.
3. Interest Rates: While rates are expected to remain elevated, they could stabilize near 6.5%, creating a more predictable environment for buyers.
4. Buyer Trends: Relocation buyers from out-of-state markets will continue to play a significant role, especially in Liberty Lake and Spokane’s higher-end market segments.

The 2024 housing market in Spokane, Spokane Valley, and Liberty Lake highlighted the region’s resilience and desirability. With a blend of urban amenities, suburban charm, and outdoor lifestyle, the area remains a magnet for diverse buyer demographics. As we move into 2025, the market is poised for steady growth, offering opportunities for both buyers and sellers.

Stay tuned to Lifestyle North Realty for the latest updates and market insights. If you’re planning to buy or sell in 2025, our team is here to guide you through the process with expertise and care.