As we turn the page to 2026, the Spokane real estate market is poised for what many experts are calling a "Great Housing Reset". And, as I’ve done for 2024 and 2025, this is my time to offer my two cents on what the data is suggesting.
After many changes to real estate in recent years, 2026 promises a shift toward stabilization and gradual recovery. While challenges remain, the outlook suggests a year of new opportunities for local buyers, sellers, and investors. From stabilizing interest rates to an optimistic national ranking, here is what you can expect from the Spokane housing landscape in the coming year.
Spokane: A National "Hot Spot" for 2026
Perhaps the most exciting news for our local market is that the National Association of REALTORS® (NAR) has officially named Spokane as one of the top 10 "Housing Hot Spots" for 2026.
What does this mean? It means Spokane is outpacing national averages in key economic and housing indicators. While other markets may stagnate, our area is recognized for having strong demand potential and a housing stock that is beginning to better align with buyer budgets.
Interest Rates: Finding a New Normal in the 6% Range
In 2025, we watched rates fluctuate, hoping for a return to the historic lows of the past. As we head into 2026, the consensus is that we are entering a period of stability rather than dramatic drops.
Mortgage rate graph from Dec. 12, 2024 - Dec. 12, 2025 from Mortgage News Daily.
Most forecasts peg the 30-year fixed mortgage rate to average between 6.0% and 6.6% throughout 2026. While this is a slight improvement from the highs of previous years, buyers should not hold their breath for sub-4% rates. This "new normal" will continue to influence affordability, but stability is key—it allows buyers to plan their budgets without the fear of sudden volatility.
And, as rates inch closer to 6% from the highs closer to 7%, look how it opens up opportunities for our own neighbors.
Data from National Association of Realtors.
Related: Looking for an affordable time to move? Read: Why Purchasing a Spokane Home in Winter is a Smart Move
Inventory: More Choices on the Horizon
One of the biggest struggles for Spokane buyers since 2020 has been a lack of options. Fortunately, the trend towards more inventory in 2025 continues and 2026 is expected to bring relief. See below how our average inventory has increased since last year.
Active inventory from 2017 - December 2025.
The "lock-in effect"—where homeowners refused to sell because they didn't want to lose their low interest rate—is finally beginning to soften. As life events (growing families, job changes) force more moves, we expect to see more "For Sale" signs in neighborhoods from the South Hill to North Spokane. This increase in inventory will help create a more balanced market, continuing to move us further away from the extreme seller-advantage we saw in the early 2020s and starting to give buyers a little more control.
Related: I talked about this “lock-in effect” in last year’s predictions.
Days on the market average from 2017 - December 2025.
As you see in the graph above, houses are staying on the market for periods of time more similar to late 2019 and early 2020. This gives buyers more time to make decisions and view more homes before putting in offers.
And, new listing data (show below) is right on track to be the same as we experienced at the end of last year. Suggesting that homes will continue to come onto the market in a consistent manner as they did last year.
New listing data from 2017 - December 2025. As you can see, November 2024 and November 2025 offer consistent new listing numbers.
Home Prices: Flat is In
If you are waiting for prices to crash, you might be disappointed. However, if you are worried about prices skyrocketing again, it feels like you can breathe a sigh of relief.
Most predictions for Spokane home prices forecast a modest growth of around 0.5% to 2.2% in 2026. Some forecasts even suggest that when you adjust for inflation, real home prices might dip slightly, offering a window of improved affordability for buyers. This deceleration is healthy; it represents a recalibration of the market where prices stabilize rather than plummet. As you see on the graph below, home prices in Spokane have held relatively steady for the past few years.
Median sale price from 2017 - December 2025.
Negotiation Power: The Ball is in the Buyer's Court
Similar to the trend we saw in 2025, buyers will have more leverage in 2026. With inventory rising and competition cooling, the days of waiving inspections and offering wildly over asking price are largely behind us.
Negotiating power is expected to tilt slightly toward buyers as more homes come online. This means you may have more room to ask for seller concessions, such as buying down your interest rate, covering closing costs, or handling necessary repairs.
What does it all mean? Advice for Buyers and Sellers in 2026
For Buyers:
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Don't wait for perfection on loan rates: While rates might dip slightly, trying to time the absolute bottom is risky. With Spokane identified as a top hot spot, demand is expected to return. Planning for a 6% mortgage loan may be better than waiting it out right now.
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Leverage your position: Use the increased inventory to your advantage. Don't be afraid to negotiate for repairs or concessions that can lower your monthly payment. Finding comparable home pricing is difficult in a slower market. Use this to your advantage when putting together your offer(s).
For Sellers:
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Price it right, right away: With price growth slowing to near-flat levels, overpricing your home is a recipe for it sitting on the market. If you need a quick home sale, pricing your home properly will be key.
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Expect competition: You are no longer the only game in town. Builders are offering incentives on new construction, and resale homes continue to consistently hit the market. Your home needs to show well to stand out. An experienced real estate agent with savvy marketing ideas can help!
Final Thoughts
The theme for 2026 is stabilization. We are moving away from the chaotic highs and lows of the pandemic era and into a more predictable, traditional real estate cycle. Whether you are looking to buy your first home or sell and move up, 2026 offers a balanced playing field that we haven't seen for a handful of years.
If you’re ready to navigate this real estate environment and take advantage of the opportunities in the Spokane market, check out my listing here or let's connect!
