Market Changes
By Jim Palmer Jr.

Recent statistics tabulated by the Spokane Association of Realtors® show that the real estate market is changing.  The most recent stats reveal that in a year- to-year comparison, sales are still up 1.5% from this same time last year; however the monthly tracking shows that October sales were down by almost 15% from the month prior.  Is that an indication that the market is cooling off? Is that cooling just a seasonal phenomenon? Some experts think it is more than that, but most agree that by this same time next year the market will begin slowing and will change from a hot sellers market to a more balanced buyers/sellers market.

Another indicator that suggests this may be true is that for the first time in several years statistics show that inventories have increased by as much as 27% compared to the same time last year.  I’ve been saying for months that when the supply side starts to catch up with the demand side of the equation that we’ll start to see a change in the market.  That appears to be happening.

Despite the slight cooling of the market, average sales price is up by over 25% in the year-to-year comparison, which may just be the delayed effect of the last couple years of low inventory.  Those same statistics also show that new listings are down by almost 5%, which simply means that listings are lingering on the market longer.  We’re seeing more price reductions now than we’ve seen for a very long time.  Could this be good news for buyers?  Probably, because it’s causing sellers to be less reckless in the pricing process than they were earlier this year when sellers could pretty much name their price then sit tight as buyers wrangled for position in aggressive bidding wars.
Is this slowing an indication that the market is about to crash?  Some doomsayers may think that, and even hope for that just to prove a political point, but it is more likely that wearied buyers are just taking a break from the frenzy and will eventually re-enter and continue to push the market as we come out of this winter and through the summer of 2022.

There are still many unsatisfied buyers out there looking for their first purchase and other eager buyers looking to upgrade or to invest their money in real estate.  I believe that sustained demand will keep the market from crashing and that a temporary slowdown may be good for most consumers.