Market Conditions in Spokane>Question Details

TobiasJones, Home Buyer in Spokane, WA

Why is there so much expensive new construction in Spokane?

Asked by TobiasJones, Spokane, WA Wed Mar 26, 2008

I am looking for a house this summer but all of the new construction that I have looked at is very expensive considering the average incomes in spokane. Are any builders starting to drop prices? Is new construction invantory any higher than normal right now?

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8
Hi Tobias,
There are currently 116 new construction homes (2007-2008) for between $225-275 K active in Spokane.
While it is true there are far more expensive new construction as well, the median home price is well represented. I would be happy to e-mail you these listings and keep you up to date in your preferred price range.
Wether a builder is flexible on price or not really depends on how much inventory they have. The market here is stable, but construction is slowing because there is a good supply.
2 votes Thank Flag Link Wed Mar 26, 2008
Again not likely in Spokane the supply and demand are fine and the prices will only creep up, remember this is not like your market there. Seattle people call me all the time asking about this and that and their mindset is from a market that shifts fast. People buying New construction in Spokane are either doctors, lawyers, retirees, or people moving here who sell their homes for much more in their state and buy a nice home hear for cheap. Our prices don't generally come down and homes can stay on the market longer here without any real reductions from fear. Your best to come and look around but from the questions you are asking I think you may be applying a different mindset to our market than you should.
Web Reference: http://www.teamquintana.com
0 votes Thank Flag Link Thu May 1, 2008
Tobias,

I am astounded at how many different answers you received. There is one post that in my opinion is fairly accurate and correlates with what my broker has been telling us.(who is a statistical genius...I might add)

According to the home builders association and market statistics, if you look at the numbers of homes on the market...new construction etc. you will see that building permits are down....grossly...however in-migration is up from the year before. Rents have gone up, and soon we will see a shortage of new construction, projectively around mid to late summer. In the course of the last month, I noticed business has really picked up and homes are really starting to sell again. I noticed that nearly every day more and more homes are pending sales. Good luck!
0 votes Thank Flag Link Mon Apr 28, 2008
Hey Tobias, New construction is slow compared to other cities, When I moved back here from Seattle I noticed unlike there where every road you drive down is a new development, here they are slowly catching on. The prices in new construction always edge up even more than residential as the development sells out. As more people move here the new homes will continue to be built, but yes there is a cap due to income. I don't think we will see a direct effect though because builders can just build in the prices that are selling. A good indicator though is watch what they are building now. They won't build if they aren't going to sell. We aren't saturated like many big cities so I don't see it getting cheaper or changing any time soon. Check out our website if you want to read our blogs or get more info about buying in Spokane.
Web Reference: http://www.TeamQuintana.com
0 votes Thank Flag Link Mon Apr 7, 2008
I have a number of homes for you to preview. Please respond to me by email at cgroves@windermere.com and I will forward links. Not knowing your price or preferred area, I did a sampling for you to see.....southside, northside, and valley area in a price range of $300K to $400K. There are 758 new construction homes on the market at this time. I am sure we can find you the perfect one. To answer your previous question about financing, FHA is a good option and I believe the loan limit has just been raised up to $271,000, minium down is 3% of purchase price, which means your purchase would be around $280,000 to $287,000 depending on how much assistance you can get from the seller. I will do another search and put together a sampling of homes in that price range as well. I need your email in order to forward. Thanks. Would love to help you.
0 votes Thank Flag Link Sat Apr 5, 2008
New construction is there and priced as it is because people buy it. There is more "affordable" new construction too : ) Now, in Spokane, there is an extra large amount of standing inventory of new construction more than most times. Look for the prices on standing inventory to be soft. and. Look for newly built and soon to be built prices to be less than what we are seeing now as lumber prices have fallen.
0 votes Thank Flag Link Fri Apr 4, 2008
Hi Tobias and thanks for your question. As a builders wife and a member of the Spokane Home Builders Association, I tend to get the inside scoop from builders here in Spokane. The last builders meeting that we had, one of the big builders was expressing a concern for a shortage of new construction over the next year here in Spokane, especially in affordable new construction. Spokane is basically an anomaly compared to other cities on the West side of the country. We do not have a huge inventory of new construction and our prices are not coming down, they are holding nicely and even projected to go up at least 4% over the next year. I do specialize in new construction and can help you find that perfect area, give you online access to all of the new construction available right now and planned to be built in the future, help you with finding a floor plan and costs of building that perfect home as a custom, and answer any other questions you might have about new construction here in Spokane. Feel free to visit my website where I have a cool new mapping search(I can answer any questions about all the different areas and neighborhoods that you'll find here and even set up your online search so that you are only looking at those areas that you are interested in. For this and any information about Spokane visithttp:// http://www.DonnaSellsSpokane.com
0 votes Thank Flag Link Thu Mar 27, 2008
Hi Tobias,
Thanks for your question! What areas in spokane are you looking at for new construction? That will help to answer your question better. Builders have dropped prices a bit and inventory on new construction is a little higher than usual right now. However, Spokanes market is still doing VERY well as compared to the rest of the nations major metros so their really hasn't been a huge need to reduce prices liked most cities are having to do. Spokane is on a VERY short list of cities that still had appreciation rather than depreciation for 2007. In addition, Washington, Oregon, and Idaho are the only 3 states that had appreciation in 2007, every single other state in the nation had depreciation. (This is based on looking at the major cities that collectively make up that states overall average.) Spokane is also on a top ten list in the nation for appreciation two years in a row now. So, the national crisis and news really isn't true for the real estate market in Spokane, it does have some trickle down effect though. Their are some really high end pricey developments here that is true, but their are also many new construction homes that are around $200K or just under, and in fabulous neighborhoods, such as five mile prairie, Mead, Colbert and Liberty Lake. I would be happy to talk to you more about these many inexpensive opportunities that are available here. See my link below for my information, home searches, and much more. I hope this proves helpful for you and most of all good luck on your search and take care! Most Sincerely, Chris Warmuth. Windermere/North Spokane, WA.
0 votes Thank Flag Link Wed Mar 26, 2008
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