SPOKANE, Wash. – Homeownership in the United States currently sits at around 65 percent according to the US Census Bureau, but many looking to get into home ownership face challenges of affordability, inventory and interest rates.
Millennials and Gen X, aged 28-59, represent the majority of homebuyers, according to the National Association of Realtors. Millennials make up 28 percent of the market, while Gen X accounts for 24 percent. Younger millennials may be first-time buyers, and those in the middle or upper ages of the millennial generation may be looking for bigger homes as their families grow, while Gen X could be looking to upgrade or downsize, depending on where their children are in their lives.
Jeff Thomas with Amplify Real Estate explained that Spokane’s market has a decent amount of inventory, though it could be better.
He noted that some buyers, including Gen X and older millennials, are locked into favorable interest rates, while younger millennials struggle with affordability due to higher interest rates. However, Thomas pointed out that interest rates are trending downward, making it an opportune time to buy before competition increases.
“If you can get ahead of the current market, that’s the best time to buy,” Thomas said. “Right now interest rates are trending downward and lots of inventory to be had, there’s the best chance right now as a first-time homebuyer or just a buyer to get a good deal on a home.”
With a bit of stagnation in the market, Thomas said many sellers are willing to make concessions now, but as competition heats up, those concessions like repairs during inspections or covering closing costs will be a lot harder to come by.
“I’m telling you right now you’re going to look like a genius if you get off the fence now and buy or trade up because you’re going to have a lot of competition in the near future as soon as those flood gates open,” Thomas said.
October and early November are ideal months for buying real estate, according to Thomas. Homes are currently on the market for an average of 40-60 days. Currently, depending on your credit score, rates are sitting near 6.5 percent, and Thomas believes just a half percent lower at 6 or 5.5 percent is when homes will really start moving.
To navigate the market, Thomas recommends buyers be financially prepared and get pre-approved.
It’s also important to shop within your budget to avoid becoming “house poor.” Even if approved for a $450,000 house, it’s important to ensure the monthly payment is affordable. Consider shopping in the $300,000-$400,000 range where there is plenty of inventory.
If it all seems overwhelming, check in with your realtor about home buying classes or programs that might be available to make the process easier.
