SPOKANE, Wash. — Ask anyone who’s tried to buy a home recently and they’ll tell you: you’re going to pay more than you expected.
People are offering money and forgoing inspections and there aren’t enough houses to meet the demand. All of this has once again placed the Inland Northwest on the list of the most overvalued housing markets.
Spokane landed at number 7 on the list. Data from Florida Atlantic University shows that Lilac City is overvalued by 55%.
Research shows that the expected home price is just over $280,000, but the average home price is over $430,000.
In Coeur d’Alene, homes are overpriced by 56%. Meanwhile, Boise tops the list with the most expensive housing market at 75%.
Local real estate agent Alyssa Curnutt says she sees prices rising dramatically and it’s because of supply and demand.
“Price boils down to one, what someone is willing to pay, and two, supply and demand. right now there’s a lot of people for every house, so supply and demand are completely out of whack right now and that’s why prices are going so high,” Curnutt said.
As more people move to Spokane, the market just can’t keep up. Lagging new construction was also a significant cause of the price hike.
Curnutt says that despite the price hike, there are ways to bolster your offer. You can reduce inspection days and have your lender go through underwriting before you make the offer, which speeds up the closing.
“As a buyer, the team you have around you is really important, it goes beyond your real estate agent… you have to have a strong lender, have a strong inspector. The right team around you, everyone doing their job well,” Curnutt said.
If you want to get into the market, the first step is to start the pre-approval process with a bank and figure out what you can afford.
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