Eastern Washington Real Estate Market Trends

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Q1

2022

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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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Q1 2022 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 select counties 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

Even though Washington State revised the 2021 total employment level downward, the Eastern Washington job market is still in positive territory after its recovery from the pandemic. The region has recovered all of the jobs that were lost and added 13,000 new jobs. The job count in Whitman and Grant counties remains marginally below their pre-COVID peaks, but I expect that to be resolved by this summer. Unadjusted for seasonality, the regional unemployment rate was 5.9%. However, when adjusted for seasonal shifts, the rate was 4.9%. The highest jobless rate was in Grant County at 6.8%; the lowest rate was in Walla Walla County at 3.9%.

Eastern Washington Home Sales

In the first quarter, 2,353 homes sold, which was down 5.7% from the same period in 2021 and 36.6% lower than in the final quarter of last year.

While these numbers don’t appear positive at face value, the drop was due to the lack of homes for sale. Although listing activity was 2.2% higher than the same period in 2021, it was 40% lower than in the final quarter of last year. Limited choice is certainly impacting the market.

Year over year, sales increased in Benton and Lincoln counties, but fell in the rest of the market areas. Sales fell across the board compared to the fourth quarter.

Pending sales were down 12.6% from the final quarter of last year, suggesting that unless we see a surge in the number of homes coming to market, second quarter numbers may disappoint as well.

A bar graph showing the annual change in home sales for various counties in Eastern Washington between Q1 2021 and Q1 2022.

Eastern Washington Home Prices

Year over year the average home price in Eastern Washington rose a very significant 21.4% to $434,921 and was 2.6% higher than the previous quarter.

When compared to the final quarter of last year, prices rose in all counties other than Lincoln and Walla Walla.

All counties contained in this report saw average sale prices rise; every county except Lincoln County had double-digit growth.

The market has yet to feel the impact of rising mortgage rates. Inventory issues persist, so it’s likely prices will continue to rise as buyers compete for what homes are available and seek to lock in a loan rate before they rise any further.

A map showing the year-over-year real estate market percentage changes in various counties in Eastern Washington for Q1 2022.
A bar graph showing the annual change in home sale prices for various counties in Eastern Washington from Q1 2021 to Q1 2022.

Mortgage Rates

Average rates for a 30-year conforming mortgage were 3.11% at the end of 2021, but since then have jumped over 1.5%—the largest increase since 1987. The surge in rates is because the market is anticipating a seven- to eight-point increase from the Federal Reserve later this year.

Because the mortgage market has priced this into the rates they are offering today, my forecast suggests that we are getting close to a ceiling in rates, and it is my belief that they will rise modestly in the second quarter before stabilizing for the balance of the year.

A bar graph showing the average rates for a 30-year conforming mortgage, plus Matthew Gardner's mortgage rate forecasts for Q2 2022 through Q1 2023.

Eastern Washington Days on Market

The average time it took to sell a home in Eastern Washington in the first quarter of 2022 was 25 days. This is 8 fewer days than in the first quarter of 2021.

Compared to the previous quarter, average days on market rose in every county other than Lincoln.

All counties other than Spokane and Franklin saw the average number of days-on-market drop compared to the same period in 2021. That said, the increased market time in Spokane and Franklin counties was modest.

During the first quarter it took an average of only one more day to sell a home than it did during the final quarter of last year.

A bar graph showing the average days on market for homes in various counties in Eastern Washington during Q1 2022.

Conclusions

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.

Employment levels continue to grow in Eastern Washington, but the housing market is still struggling to find its direction. A lack of homes for sale remains a major issue and the region appears to be headed toward a slower pace of sales. For now, though, price growth remains strong. The impact of rising mortgage rates on the housing market lags by about three months. It will be interesting to see how this affects the pace of price growth once the spring market is fully underway.

A speedometer graph indicating a seller's market in Eastern Washington during Q1 2022.

Given all the factors discussed here, I have chosen to leave the needle in the same position as the previous quarter. Sellers are still in the driver’s seat—as list prices continue to increase—but higher mortgage rates will further exacerbate affordability concerns in several markets, which may move the region toward a period of greater stability. We will have to wait and see.

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

>

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

2022
Q1 2022 Eastern Washington Real Estate Market Trends

Q1 2022
POST | (PDF)

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)

Q4 2021 Eastern Washington Market Trends

Q4 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.