Eastern Washington Real Estate Market Trends

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Q3

2021

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Our Eastern WA real estate market data is updated quarterly to aid in your real estate forecasts. Historical Eastern WA real estate data and trends are included below the latest update. We break down our data by county, but we cover major cities in this region including Spokane, Walla Walla, and the Tri-Cities.

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Q3 2021 Gardner Report

Eastern Washington
Real Estate Market Update

by Matthew Gardner

Below is the latest Eastern WA housing market trends analysis. Additional links:

Historical Eastern WA Data
Central WA Data
Western WA Data
Other Regional Data

 

The following analysis of the Eastern Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

 

Regional Economic Overview

The Eastern Washington job market lost more than 47,000 jobs over the pandemic period, but the region has now recovered all of these jobs and added almost 11,000 new positions. Every county except Whitman shows employment levels above their pre-pandemic peak. Of specific note is Spokane County, which met my forecast in the second quarter Gardner Report and has now seen a full job recovery. Employment growth has, unsurprisingly, allowed the unemployment rate to drop further, with the region showing just 4.6% of its workforce now without a job. This is down from the pandemic peak of 14.9%.

eastern washington Home Sales

❱ Home sales throughout Eastern Washington fell 2.2% compared to the same quarter in 2020. This is not very informative given that the country was experiencing a massive housing rebound following the outbreak of COVID-19. More useful is that sales rose 13.5% from the second quarter of this year.

❱ Listing activity was up more than 64% compared to the second quarter of this year, which allowed sales to grow. That said, available inventory is still 13.7% lower than last summer.

❱ Year-over-year, sales rose in three counties but fell in the other four. Compared to the second quarter, sales rose in all counties other than Whitman, with significant increases in Lincoln County, where transactions rose more than 48%.

❱ Pending home sales, which are an indicator of future closings, were 3.1% higher than in the prior quarter. This suggests that closings in the fourth quarter will be positive.

A bar graph showing the annual change in home sales for various counties in Eastern Washington during the third quarter of 2021.

eastern washington Home Prices

A map showing the real estate market percentage changes in various counties in Eastern Washington during the third quarter of 2021.

❱ Year-over-year, the average home price in Eastern Washington rose a very significant 23.7% to $425,630 and was 3.8% higher than in the second quarter of this year.

❱ Demand remains strong, as demonstrated by the rising number pending sales, and the increase in the number of homes for sale has not slowed the market.

❱ Prices rose in every county other than the small Lincoln County market. There were double-digit increases in all other areas.

❱ Mortgage rates remain very competitive, which has allowed prices to continue rising. However, as I mentioned in the last Gardner Report, affordability concerns are starting to rise. Both Spokane and Walla Walla counties are now technically unaffordable for buyers making the median income, and every county in this report—with the exception of Lincoln County—is considered unaffordable for first-time buyers.

A bar graph showing the annual change in home sale prices for various counties in Eastern Washington during the third quarter of 2021.

Days on Market

❱ The average time it took to sell a home in Eastern Washington in the third quarter of 2021 was 14 days.

❱ During the quarter, it took 17 fewer days to sell a home in Eastern Washington than it did a year ago.

❱ All markets saw days on market drop compared to the third quarter of 2020, with significant declines in Lincoln County (-29 days), Whitman County (-26 days), and Grant County (-22 days).

❱ It took six fewer days to sell a home in the third quarter than it did during the second quarter of this year.

A bar graph showing the average days on market for homes in various counties in Eastern Washington during the third quarter of 2021.

Conclusions

A speedometer graph indicating a seller's market in Easter Washington during the third quarter of 2021.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

With a full return of the jobs lost to COVID-19 and very favorable mortgage rates, home buyers have been out in force. This, in concert with more choice in the region, caused home sales and prices to rise.

As it stands today, the only thing that’s favoring buyers is that there are more homes for sale. But, given the direction of pending sales, prices, and shortening days on market, the region still favors home sellers. As such—and even in the face of affordability issues starting to appear in select markets—I have chosen to move the needle a little more in favor of home sellers.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

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Major Eastern WA cities covered in this report:

Spokane

Spokane Valley

Kennewick

Pasco

Richland

Walla Walla

Pullman

Moses Lake

West Richland

Cheney

College Place

Liberty Lake

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Eastern WA counties covered in this report:

Benton

Franklin

Whitman

Grant

Lincoln

Spokane

Walla Walla

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Gardner Report Archive

Eastern Washington
Historical Reports

2021
Q1 2021 Eastern Washington Market Trends

Q1 2021
POST | (PDF)

Q2 2021 Eastern Washington Market Trends

Q2 2021
POST | (PDF)

Q3 2021 Eastern Washington Market Trends

Q3 2021
POST | (PDF)

2020
                    Eastern Washington Real Estate Market Update

Q1 2020
POST | (PDF)

                    Eastern Washington Real Estate Market Update

Q2 2020
POST | (PDF)

                    Eastern Washington Real Estate Market Update

Q3 2020
POST | (PDF)

Q4 2020 Eastern Washington Market Trends

Q4 2020
POST | (PDF)

2019
                    Eastern Washington Real Estate Market Update

Q1 2019
POST | (PDF)

                    Eastern Washington Real Estate Market Update

Q2 2019
POST | (PDF)

                    Eastern Washington Real Estate Market Update

Q3 2019
POST | (PDF)

                    Eastern Washington Real Estate Market Update

Q4 2019
POST | (PDF)

2018
                    Eastern Washington Real Estate Market Update

Q1 2018
POST | (PDF)

Q2 2018
POST | (PDF)

                    Eastern Washington Real Estate Market Update

Q3 2018
POST

                    Eastern Washington Real Estate Market Update

Q4 2018
POST | (PDF)

2017
                    Eastern Washington Real Estate Market Update

Q1 2017
POST | (PDF)

                    Eastern Washington Real Estate Market Update

Q2 2017
POST | (PDF)

                    Eastern Washington Real Estate Market Update

Q3 2017
POST | (PDF)

                    Eastern Washington Real Estate Market Update

Q4 2017
POST | (PDF)

These Eastern Washington real estate reports, data, forecasts, and market trends are provided for informational use. If you find it useful, please properly attribute this resource with a link. Parts of this east region of Washington State are also referred to as the Eastside, the Columbia River Basin, the Tri-Cities, Inland Northwest, and the Palouse.