SPOKANE, Wash. — Ask anyone who has tried to buy a house recently and they’ll tell you: you’re going to pay more than you expected to pay.
People are offering cash, and waiving inspections and there are not enough houses to keep up with the demand. All of that has once again put the Inland Northwest on the list of most overvalued housing markets.
Spokane landed at number 7 on the list. Data from Florida Atlantic University shows the Lilac City is overpriced by 55 percent.
The research shows the expected price of homes is just over $280,000, but the average price of a home is more than $430,000.
In Coeur d’Alene, homes are overpriced by 56 percent. Meantime, Boise topped the list with the most overpriced housing market at 75 percent.
Local realtor Alyssa Curnutt says she is seeing the prices rise dramatically and it’s because of the supply and demand.
“What price comes down to is one, what someone is willing to pay for, and two, supply-demand. right now there are many people for each house so the supply-demand is completely out of the whack right now and that’s why prices are going up so high,” said Curnutt.
As more and more people move to Spokane, the market simply can’t keep up. New construction lagging behind has also been a big cause of higher prices.
Curnutt says that despite the rising prices, there are ways to strengthen your offer. You can lower inspection days and ask your lender to get through underwriting before putting in the offer, making for a quicker closing.
“As a buyer, the team that you have around you is really important, that’s beyond your real estate agent… you need to have a solid lender, have a solid inspector. The good team around you everyone is doing their job well,” said Curnutt.
If you want to jump into the market, the first step is to start the process of pre-approval with a bank and figure out what you can afford.
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