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Steve Silbar, REALTOR® + TV Host
ssilbar@johnlscott.com
April 1st, 2025
4-min read

The Spring Market: What Sellers Should Expect in 2025

After years of rapid price increases, Spokane's housing market is stabilizing. Here's a look at the key trends shaping the market:

House with Spring flowers
  • Median Home Prices: As of March 2025, the median sale price in Spokane is $412,000, nearly the same as last year. While prices aren't skyrocketing like they did from 2020-2022, they are holding steady, which is a positive sign for sellers.
  • Days on Market: Homes are now spending an average of 57 days on the market, also, about the same as a year ago. This means houses aren't selling overnight like they did in the post-pandemic boom, but well-priced and well-prepared homes are still moving.
  • Market Activity: The number of home sales is up 2% from last year, meaning slightly more buyers are actively searching. Spokane is still an attractive market, but buyers are being more selective.
  • Housing Inventory: More homes are being listed, giving buyers more options. A growing inventory means your home will need to stand out.
  • Interest Rates & Affordability: Mortgage rates are holding between 6.25% and 7%, and affordability is still a challenge for many buyers. This could mean fewer bidding wars, but it also means well-priced homes in desirable areas are still selling.

What If You Need to Buy Another Home, Too?

Selling and buying simultaneously can be tricky, but it's completely doable with the right strategy. Here are some considerations:

1. Should You Sell First or Buy First?

Selling First: This is the safer option financially, ensuring you don't carry two mortgages. However, it may require temporary housing while you search for your next home.

Buying First: If you find the perfect home before selling, you'll need a strong financial position or a contingent offer (where your purchase depends on selling your current home). In a balanced market like Spokane's, contingent offers are more likely to be accepted than during the competitive years.

cherry blossoms

2. Using Your Home Equity Wisely

If you've built up a lot of equity in your home, you can use that toward your next purchase. But if you need that money to buy, consider:

A. Bridge Loans - Short-Term Financing to Cover the Gap

A bridge loan is a temporary loan that helps homeowners buy a new home before selling their current one. It's essentially a short-term loan (6-12 months) that provides you with the funds for your down payment on a new home while you wait for your current home to sell.

    How It Works:


  • A lender provides a short-term loan based on the equity in your existing home.
  • You use that money for the down payment on your new home.
  • Once your existing home sells, you pay off the bridge loan.

    Pros:


  • You can buy before you sell, avoiding the stress of finding temporary housing.
  • It allows you to act quickly in a competitive market.
  • No need to write a contingent offer, making you a more attractive buyer.

    Cons:


  • Higher interest rates than a standard mortgage.
  • Can be risky if your home takes longer than expected to sell.
  • Requires strong financial standing (good credit and income to qualify).
vase of spring flowers

B. HELOC - Using Your Home's Equity Before Selling

A home equity line of credit (HELOC) lets you borrow against the equity in your home. Unlike a bridge loan, a HELOC is a revolving credit line, meaning you can borrow what you need and pay it back over time.

    How It Works:


  • Before listing your home, apply for a HELOC on your current home.
  • Once approved, withdraw funds and use them for your next home's down payment.
  • After you sell your home, pay off the HELOC with the sale proceeds.

    Pros:


  • Lower interest rates than bridge loans.
  • More flexible than a lump-sum loan—you borrow only what you need.
  • Can be used for other home-buying expenses, such as closing costs or moving.

    Cons:


  • If your home doesn't sell quickly, you could be stuck with a HELOC payment plus your new mortgage.
  • Lenders may count the HELOC as additional debt, impacting your ability to qualify for a mortgage.
  • HELOCs are variable interest loans, meaning the rate can go up.

Note: Some lenders may have rules or restrictions on how HELOC funds are used and do not allow borrowers to use borrowed funds (like a HELOC) for a down payment. However, if you qualify based on debt-to-income (DTI) ratios and your lender approves, it is a valid financing strategy.

3. Timing Your Move with a Rent-Back Agreement

A rent-back agreement is when you sell your home and rent it from the buyer for a short period (usually 30-60 days). This gives you extra time to find and close on a new home while avoiding temporary housing.

vase of spring flowers

    How It Works:


  • When negotiating your home sale, you ask the buyer for a rent-back period.
  • You agree on rent terms and duration.
  • After closing, you stay in the home as a tenant until you're ready to move.

    Pros:


  • Gives you extra time to find your next home.
  • Avoids moving twice (no need for temporary housing).
  • Makes your offer on a new home stronger, since you've already sold.

    Cons:


  • Not all buyers will agree to a rent-back, and there are legal considerations for both parties.
  • You'll need to pay rent, usually at the buyer's mortgage rate.
  • Time limit (usually 30-60 days), so it may not work if you need more time.


How to Prepare for a Successful Sale

red spring flowers

In a market that's still favorable for sellers but requires more effort than in previous years, preparation is key. Here are the best ways to get ready:

1. Price It Right from the Start

With more homes on the market and buyers being cautious, overpricing can hurt you. Homes priced competitively from day one attract more interest and can even lead to multiple offers.

2. Maximize Curb Appeal

    First impressions matter! Some simple ways to boost curb appeal include:
  • Fresh paint on the front door and trim.
  • Power washing the driveway and sidewalks.
  • Well-maintained landscaping with fresh mulch and trimmed bushes.

3. Take Care of Repairs Before Listing

    Small issues can scare off buyers or lead to lower offers. Fix:
  • Leaky faucets.
  • Peeling paint.
  • Damaged flooring.
  • Loose doorknobs or cabinet hinges.

4. Stage Your Home for Success

    You don't need a professional stager, but a well-presented home sells faster.
  • Declutter rooms to make them feel more spacious.
  • Remove personal items so buyers can imagine themselves in the space.
  • Brighten rooms with fresh lighting and neutral decor.
red spring flowers

Thinking about selling? Let's talk strategy to maximize your home's value and make your next move smooth and successful!

 
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