Linda Miller, 2010 President
Spokane Association of REALTORS®
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As a new decade of real estate begins in Spokane, I have stepped into the heart of the Spokane Association of REALTORS® as its 2010 President. I look forward to continuing the tradition of this important column, because all real estate is local. The responsibility to inform consumers of the true local market picture is at the heart of the passionate professionalism of all Spokane REALTORS®.

Where we are now in 2010 is definitely not where we have been. Ten years tells the story.

In the chart above, you will see that as the decade began, the median home price in Spokane County (as reported by the Spokane Association of REALTORS®) was $104,500. As 2009 came to a close, the median price was $169,000 – a 62% increase. Readers will note an inevitable shrinkage of home equity in the most recent three years, but ten-year home equity gains for most Spokane homeowners are positive, and this is what makes homeownership in our region a sound investment.

Not a fluke, either. The percentage of homeowners with negative equity “appears to be on the decline,” according to a recent Washington Post article, Good Real Estate News: Home Equity is Rising Again, (Kenneth R. Harney, 2/13/10). “The major markets with the lowest underwater rates tend to be areas where the equity boom never quite boomed and where toxic mortgages and fog-the-mirror underwriting by lenders were never the rage,” Harney states.

Harney goes on to explain that “the Federal Reserve conducts massive research into mortgage balances and home-value changes in hundreds of local markets around the country and reports its findings quarterly. According to the Fed’s most recent “flow of funds” survey, homeowners’ net equity grew by nearly $1 trillion from the recession’s nadir in the first quarter of 2009 through the third quarter. From June 30 to Sept. 30, net equity rose by $418 billion.”

For this reason, combined with the pair of Federal Homebuyer Tax Credits ($8,000 for first time buyers or $6,500 for even more buyers who quality) we anticipate a strong spring real estate market in Spokane.

If you have hesitated through the uncertainty of this cycle, or have other questions, I invite you to talk with any Spokane REALTOR® today. The homebuyer tax credits are still available for homes under purchase contract as late as April 30 and they allow up to 60 days to close after that time. Also, I encourage you to visit www.SpokaneOpen.com where you can preview hundreds of local REALTOR®-sponsored open houses, 24/7.

Real estate is a business, but at its heart is “service.” I am proud to serve our membership base of about 1,800 REALTORS®, and I pledge this year that the public will learn the many ways that REALTORS® serve this community “with heart.”

Linda Miller, GRI, CRS, CRB is a Certified Real Estate Brokerage Manager with Prudential Spokane Real Estate. She can be reached at President@SpokaneRealtor.com.