Decoding the Relationship Between Home Age and Market Value

When navigating Spokane’s real estate market, many buyers and sellers often wonder: Does the age of a house affect its value? The short answer is yes, but the details behind this relationship are nuanced. Home age can impact desirability, maintenance costs, and market demand, which all play a role in determining value. This article explores how the age of a property influences its market worth and what it means for buyers and sellers in Spokane.

Older homes often possess unique charm, craftsmanship, and history that newer properties may lack. In Spokane, neighborhoods like Browne's Addition and South Hill are known for their historic homes, many dating back to the early 20th century. These homes often feature stunning architectural details, large lots, and mature landscaping, all of which appeal to buyers seeking character and individuality.

However, it’s important to note that not all older homes carry the same appeal. While historic properties in Spokane may command higher prices due to their character, homes that have been poorly maintained or lack updates may lose value. Buyers are increasingly interested in homes with modern amenities, which means outdated properties may face challenges when competing in today’s market.

In contrast, newer homes are often built with modern preferences in mind. Features like open floor plans, energy-efficient systems, and smart home technology make newer properties desirable, particularly for younger buyers. In Spokane, areas like North Indian Trail and Eagle Ridge showcase neighborhoods filled with recently built homes catering to this demand.

Newer homes also come with the added benefit of lower maintenance costs. With updated plumbing, electrical systems, and roofing, buyers are less likely to encounter expensive surprises. These factors can boost a home's market value and make it a preferred choice for those who want a move-in-ready property.

Spokane’s housing market has been dynamic over the years, with steady growth in home values. As of 2024, the average home value in Spokane stands around $380,000. However, the market is seeing signs of stabilization, with some neighborhoods experiencing slight dips in value. While demand remains strong, factors like a home's condition, age, and location have become increasingly important in determining its value.

In areas with high demand for historic homes, such as South Perry and Cannon Hill, older properties that have been updated tend to sell quickly and at a premium. Meanwhile, neighborhoods with a concentration of newer homes often attract buyers looking for convenience and energy efficiency.

A key aspect of how a home’s age impacts its value is its condition. Well-maintained older homes with modern upgrades can rival the appeal of newer properties, while homes that show signs of neglect can see their value diminish rapidly.

Buyers in Spokane prioritize homes with:

• Updated kitchens and bathrooms
• Modern HVAC systems
• Energy-efficient windows and appliances
• Structurally sound foundations and roofs

So, what’s the bottom line? A home’s age is only part of the equation. Properties that blend the charm of older construction with the functionality of modern updates are the ones that tend to stand out in Spokane’s competitive market.

The concept of effective age versus chronological age plays a significant role in real estate valuation. Chronological age refers to how old the home is based on its construction date. Effective age, on the other hand, reflects the home’s condition and the level of care it has received.

For example, a home built in 1920 but updated with new electrical wiring, plumbing, and energy-efficient windows may have an effective age closer to 20 years. In Spokane’s market, homes with a lower effective age tend to attract higher offers, as buyers see them as better investments.

When appraisers evaluate homes in Spokane, the property’s age is only one factor among many. They assess the overall condition, recent upgrades, and the market demand for homes of a similar age. While older homes in neighborhoods like Manito Park may command higher appraised values due to their desirable location and character, homes in need of extensive repairs often see their appraisals come in below the asking price.

Spokane’s buyers have diverse preferences when it comes to home age. First-time homebuyers and families often gravitate toward newer properties for their modern amenities and lower maintenance costs. On the other hand, buyers seeking unique features and a sense of history are drawn to Spokane’s vintage homes, even if these require some renovation.

Spokane’s housing market offers a mix of both historic and new construction. This diversity ensures that buyers can find options suited to their preferences, whether it’s a Craftsman home in the West Central area or a contemporary design in Five Mile Prairie.

For sellers, understanding how a home’s age affects its value can help in pricing the property competitively. Investing in key updates or repairs can increase a home’s market appeal and lead to a quicker sale. Buyers, on the other hand, should weigh the pros and cons of a property’s age, factoring in potential maintenance costs, energy efficiency, and overall condition.

If you’re looking to buy or sell a home in Spokane, Avenue Stone Real Estate is here to help. With extensive experience in Spokane’s diverse market, the team at Avenue Stone Real Estate can guide you through every step of the process.

Whether you’re searching for a charming historic home or a modern, move-in-ready property, Avenue Stone Real Estate is committed to helping you find the perfect match. Contact Tanya at Avenue Stone Real Estate today to explore your options and take the next step toward your real estate goals.