South Hill Real Estate Market Prices, Trends, and Forecast 2023

South Hill Real Estate Market Prices, Trends, and Forecast 2023

Colloquially known as the “soul of Spokane,” South Hill exerts an almost gravitational pull on returning locals and newcomers to the city. It comprises several constituent neighborhoods: Cliff Cannon, Comstock, Lincoln Heights, Manito, and Rockwood. Generally, South Hill extends from the commercial 14th St. in the north to 29th St. in the south.

The residential areas within these boundaries feature a diverse collection of architecture, including cottages, Tudors, Victorians, and mansions. Prices vary accordingly; many residents move from places like Seattle for lower mortgage payments and a comparably high living standard. As you gain your bearings, Manito Park serves as a helpful point of reference. The park, which extends from 17th St. to 25th St., includes a rose garden, a Japanese garden, sunken gardens, and playgrounds fit for kids.

The neighborhood is full of curving walkways, proximity to parkways and boulevards, and historic architecture. Currently, the South Hill real estate market is experiencing cooling trends. This opens up opportunities and challenges for buyers, sellers, and investors. Read on for a deeper understanding of market trends and what to expect throughout the year.

A review of the South Hill real estate market

Market conditions in the area are slowing down. Less buyer demand is reflected in fewer sales; in Spokane, sales volume decreased by 48.5% compared to last year. As of March 2023, sales volume had picked up somewhat, with the year-over-year deficit down to 22.1%.

Many factors, including rising mortgage rates, conspire to demotivate sellers and limit buyers’ purchasing power. And with fewer buyers on the market, housing inventory has increased by 107.1% compared to last year. However, supply is still very low at 1.3 months. Inventory may be slow to replenish as new listings have decreased by 7.6%.

South Hill housing market forecast 2023

The market in South Hill will continue cooling throughout the year. As interest rates remain high, sellers will price their homes lower to attract buyers to their listing. Given South Hills’s low renter occupation rate, this neighborhood may not be the best for landlords.

Declining home values

Home values in South Hill are stable. The median closed price for properties in the area is $400,000, a modest 7% decrease compared to last year. South Hill real estate benefits from reliable appreciation rates and intangible characteristics like tree-lined streets and a quality school system.

Rising interest rates

Interest rates are on the rise in South Hill and across the county. According to NAR, the average monthly mortgage payment in the county is $2,136. This is $804 higher than last year’s average monthly payment of $1,333. Across the state, 30-year fixed mortgages have an average rate of 6.69%, while 15-year fixed mortgages have an average rate of 6.06%. Buyers should ask for multiple quotes from lenders when planning their home purchase.

Unfavorable conditions for landlords

Landlords may have difficulty investing in South Hill’s rental properties. Although South Hill offers excellent amenities and a quiet atmosphere, most residents own their homes. The average monthly rent for a one-bedroom apartment has remained stable at just under $1,000. However, the rental rate for two-bedroom apartments has increased by 4% in the last year. Landlords should research local demand before investing.

Growing population

The total population of South Hill increased by about 12,000 from 2010 to 2020. Most of the current population has remained in the same home since last year, while most of the new population moved from within Washington. The owner-occupied housing rate in South Hill was 73% from 2017 to 2021.

Spokane County market trends

The market trends across Spokane County reflect current trends across the South Hill real estate market. Closed sales for single-family homes have decreased by 20.2% compared to last year, which indicates less buyer interest in listings on the market. Although active inventory has increased by 123.4%, the market’s supply is still well under two months.

In the wake of the global pandemic, South Hill is still recovering from a severely depleted inventory caused by increased buyer demand. As many people traded a downtown condo for a single-family home in residential areas, condos experienced a dip in demand and price.

South Hill real estate market: should you invest?

There are many reasons to invest in the South Hill real estate market. Although it may not be the best for landlords, those interested in a retirement community or someplace to raise a family are right next to Spokane’s best amenities. Now is an excellent time to take advantage of declining prices and increasing inventory.

Tips for entering the current market

Follow these buyer and seller tips when entering South Hill’s cooling market.

Price listings correctly

Now more than ever, sellers should seek professional advice when pricing their properties. Buyers are more willing to wait for a good deal which means overpriced properties are at risk of lingering on the market. An agent can make a comparative market analysis to price real estate accurately.

Get pre-approved

Although searching for a mortgage may seem daunting to buyers, proof of funds, like a pre-approval, is integral to making a strong offer. Many sellers won’t take an offer seriously without one. Buyers who know the amount they’re approved for can narrow their search to meet loan limits.

Ready to invest in South Hill real estate?

South Hill is an appealing neighborhood that residents love for its intimate charm and outdoor recreation. Market trends in the area are cooling, reflected in fewer home sales and decreasing median prices. When you’re ready to start a home search or sale in the area, contact experienced agent Tanya Starkel for expert guidance.

As the owner of Avenue Stone Real Estate, Tanya was rated as the best agent in Keller Williams for team sales volume in 2021. Tanya and her team deeply understand the local market in neighborhoods throughout Spokane. Reach Tanya anytime and discover how she can level up your home search.

*Header photo courtesy of Tanya Starkel

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