Buyers can find a home with stamina: the Spokane buying season kicks off amid less available properties that often attract multiple offers

When Bethany and Caleb Alcamo began their house hunt in Spokane, the couple knew they wanted a property in a nice area with space for their family.

But they didn’t expect their search to take nearly three years.

First-time homebuyers submitted dozens of real estate bids but were repeatedly outbid, causing the couple to pause the search a few times before releasing it again this year.

“We have rented a house for the past year and a half. Our family is still growing and we want to have our own space, ”said Bethany Alcamo in early April. “We decided to look again. We have submitted some offers. We hope we can get something. “

The Alcamos are among several homebuyers operating in the hot housing market in Spokane, an area that compares to larger subway areas on the west coast such as Seattle and Los Angeles.

The rise in remote working during the coronavirus pandemic has further accelerated the trend of non-area shoppers fleeing larger cities for medium-sized metros.

Real estate agents expect demand to continue to outpace the number of properties on the market during Spokane’s spring buying season, typically one of the busiest times of the year for real estate.

“I don’t see ourselves seeing a spring market any hotter than what we’re in,” said Tom Clark, agent at Kestell Co. Realtors and chairman of the government affairs committee for the Spokane Association of Realtors. “We’re very limited by the amount of inventory we have.”

Spokane County’s median closing price rose to its highest level in history last month at $ 341,750, up 17.9% from $ 289,900 in March 2020. This is based on data from the Spokane Association of Realtors. The median closing price in February was $ 325,000.

The county’s housing stock declined to 209 homes in March, the equivalent of an 11 day supply of homes in the market. That said, it would take 11 days to sell all of the available homes in the market. For comparison: In March 2020, the district had 592 houses on the market.

Also in March, Realtor.com named Spokane the 10th hottest property market in the country based on how fast homes were selling and the number of page views each listing on the Realtor.com website received.

The national median sales price for existing homes was $ 313,000 in February, up 15.8% from $ 270,400 in February 2020, according to the National Association of Realtors. March data has not yet been released.

Buyers compete with 10 to 12 offers and many write escalation clauses in their offer so they can gradually increase the amount they are willing to pay to avoid overbidding, Clark said.

“There are more bar offers. Most of them are people coming in from outside the area, ”said Clark. “We also see that buyers are becoming more creative with their offers.”

There has been an increase in the number of buyers, including addendums on valuation gaps in their listings stating that they are paying the difference between a lender’s valuation for the home and the asking price.

Clark encourages elected officials to find solutions to remove barriers to home ownership by addressing the county’s housing supply problem stemming from a variety of factors, including a lack of new housing following the Great Recession.

The lack of supplies problem is compounded by skyrocketing prices for land, lumber, and materials, in addition to the new impact fees resulting from the state’s new energy code that could add $ 10,000-15,000 to the cost of an entry-level home, added Clark.

While Spokane’s real estate market is challenging for buyers, it is a bright spot for sellers, said Jodi Mouchett, broker at John L. Scott Real Estate in Spokane.

“If you’re a seller now, you’ll make good money. The asking price is a kind of starting point. It’s not really what it’s going to end up with, ”she said. “Sellers benefit from well-earned equity. Buyers struggle. You pay more for the house than the list price. It’s a tougher market for buyers, but it’s not entirely impossible. “

With homes fetching thousands above asking price, it potentially presents an opportunity for sellers looking to rise in the market, Clark said.

“If you sell in this market, you will likely have cash when you buy,” said Clark. “Sellers believe they can’t sell because they can’t buy. It is not true that if you sell you will not find a home … most sellers in the market today would be very skilled buyers. Cash-in-hand buyers – they can compete a lot in this market. “

Clark advises buyers to work with an experienced broker who can help them create the best possible deal.

Bethany Alcamo, based on her home buying experience, suggests that buyers do their research on lenders, mortgage rates, and brokers. She also advises buyers to check property listings every day.

The Alcamos ended their three year house search this month. The couple’s offer was accepted at a 1,800-square-foot rancher on half an acre property. You are currently going through the closing process.

“Stick with it and something will come some time,” said Bethany Alcamo. “It’s just a time game and a waiting game. It’s going to happen if it’s supposed to happen. “