ISSUE 118
NEWSLETTER
AUGUST 2021
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Spokane opens to the world
I
n 1960, my parents bought a house at 4014 Rogen Dr. in Encino, California for $59,000. One 1960 dollar would buy $9.22 in today's goods and services, thanks simply to inflation, which means that my parents paid the 2021 equivalent of $544,000 for that house. But $544,000 would not buy that house today. A popular online valuation service estimates its current market price at $1,761,000. Why? The reason is that, more than the mere price of the home, its value has increased, driven by the mighty engine of DEMAND. And what caused this increase in demand? The transformation of Los Angeles from the insular community it was to a vast, wealthy, cosmopolitan city with financial connections to every corner of the world. Just such a transformation must have been the goal of the visionaries who, in 1974, tore down Spokane's tangle of partially disused railroad lines and invited the world to join them for a Fair. They jump-started a local economy in the doldrums, but the real transformation had to wait for the deployment of the Internet and, ironically, for the world pandemic of COVID-19. The awareness that one didn't have to be "there" to avoid being square dawned in the first decade of the new millennium, when Microsoft personnel, headquartered in
Redmond, started buying homes in Spokane, where the Cost of Living Index was half of what it was in Seattle Today, that differential is not quite as great, but still 19% lower. Today’s Microsoft employees could save 19% of their salaries by moving to Spokane. Needless to say, with the advent of Zoom, and the spreading awareness that productivity could be actually increased by working from home, the COVID-19 incentive suddenly shone a bright light on our region. Over the past five years, it has become extremely difficult to find an investment property in this region that satisfies basic investment standards. Rates of return considered totally unacceptable in 2016 are today fought over ferociously. According to Dave Black, of NAI Black Commercial Real Estate, rates of return in our market have fallen from 8-10% to below 5%, while vacancy rates, traditionally in the 5-6% range, now hover around 1%. None of these factors, however, has had as profound an impact on our region's real estate market as has the growth of population, which has risen over the past decade by a startling 101,000 residents, according to the 2020 census. ...continued on next page
“Spokane opens to the world” continued... All of these people have needed places to shop, offices for their desks and computers, and restaurants, pubs and espresso dispensaries. Most of all, they have needed places to live. Many people wonder if this recent growth in the Spokane region is a short-term disruption in our regular economic cycle or is being driven by long-term factors. We reached out to Gary Ballew, Vice President of Economic Development at Greater Spokane Inc. to get some insights.
“When I look at the Spokane region specifically, we have a lot of underpinnings for long-lasting economic growth. " “While we have seen people move due to the pandemic, we have also seen some rethink their approach in how they want to work and what they value. This has led to growth in mid-size markets across the United States.” Gary continued, “We saw growth in similar communities, like Salt Lake City and Boise. Companies follow talent, and communities that can attract and retain talent are always popular. There has been a fundamental shift in the economy that will benefit these mid-size markets.” “When I look at the Spokane region specifically, we have
a lot of underpinnings for long-lasting economic growth. We have a growing tech sector, a regional health services sector, an advanced manufacturing capability, a growing life sciences cluster and a historic downtown core that acts as a hub to all of this activity.” We also asked Gary about what he thinks will be most important for economic recovery. “Talent, hands down, talent. Talent is Spokane’s strongest asset. Regionally we have two medical schools, three colleges, and eight universities graduating around 77,000 students. Combine that with this amazing setting where we have more urban activities, culture, and art right next to the great outdoors. We are really well positioned for future success.” Contributed by Larry Lapidus
HOME RECIPES Spicy Peanut Soup with Sweet Potato + Kale Ingredients 2 tablespoons olive oil Half an onion, diced 1 jalapeño, minced 2 cloves garlic, minced
Instructions
3 large sweet potatoes, peeled and cubed
1. Heat the olive oil in a large soup pot over medium heat and add the onion, garlic, and jalapeño. Saute until soft and fragrant.
1 14-ounce can fire roasted tomatoes 1 14-ounce can light coconut milk 2 cups water 1 teaspoon salt 1 teaspoon curry and/or turmeric 1/2 cup chopped peanuts 1/4 cup peanut butter 1-2 cups kale, stems removed, chopped
2. Add sweet potatoes. I like to brown them a little bit with the aromatics to get them nice and flavorful. 3. Add tomatoes, coconut milk, water, spices, and peanuts. Simmer until sweet potatoes are fork-tender. 4. Add peanut butter and kale. Simmer until everything is thick, creamy, and delicious. Top with more peanuts and a little cilantro if you’re obsessed like me. Courtesy of Pinch of Yum
Interior Design Trends: Cottagecore Home Decor
W
hen you buy a new home, you want it to be a reflection of you and your style. As you consider various trends, you may come across a popular new one called cottagecore. But what is it, exactly, and will it work for your interior design needs? Essentially, cottagecore home decor is a nostalgic journey to a simpler time and place. If sipping tea in a garden, breathing in the delicate scent of roses and honeysuckle strikes your fancy, consider these key elements: Nostalgia From the garden to the living room, the house should speak of bygone days. This may look different to each person. If your cherished memories include crocheted Afghans and ruffled curtains, by all means, include them. If they lean more toward the brown leather overstuffed couch and the roll-top desk you might find in an 1890's ranch house, then go that direction. Nature Embracing nature is critical to the cottagecore style. This doesn't mean that you must raise your own chickens and livestock in order to enjoy the designs.
But the interior of the home should blend with the environment surrounding the exterior. This can be accomplished with muted colors, natural materials, house plants, and fresh or dried flowers. The romantic ideal of rural living can be reflected in prints and paintings without the less pleasant realities of farm life. An indoor herb garden is just the right touch to a cozy kitchen, while the fresh herbs bring your recipes to life. do-it-yourself To truly embrace the cottagecore lifestyle, you should bring in your own creations. Have you learned to embroider? Frame an original piece and hang it on the wall. Did you grow your own fruits and vegetables? Proudly store them in wire baskets on the kitchen counter. Craftspeople know that you can't create anything worthwhile without making a little mess. You can embrace the clutter a bit without letting it take over. A basket of colorful yarn complete with knitting needles will actually enhance the decor of the den. You may even discover common interests with friends you didn't know existed. Contributed by Delta Media Group
Coldwell Banker Tomlinson 4102 S Regal St, Suite 201 Spokane, WA 99223
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ISSUE 118 | AUGUST 2021 ©2021 Coldwell Banker Tomlinson. All rights reserved. Each office is independently owned and operated. If you currently have an Agent assisting you with the purchase or sale of property, this is not a solicitation for business.
SPOKANE & Coeur d'alene REAL ESTATE MARKET STATISTICS July 2021 snapshots Spokane County
Coeur d'Alene
Average Sales Price
Median Sales Price
Average Sales Price
Median Sales Price
$420K
$399K
$652K
$511K
Up 27.3%
Up 32.3%
Up 37.7%
Up 32.8%
Current Listing Inventory
Average Days On Market
Current Listing Inventory
Average Days On Market
418
6
710
72
Down 15.9%
Down 64.7%
Down 32.6%
Down 23.4%
Closed Sales
Annual Residential Sales
Closed Sales
Annual Residential Sales
732
4,437
420
2,643
Down 14.9%
Up 4.7%
Down 25.5%
Up 4.5%
July 2021, as compared to July 2020. The information in this report is compiled from a report given by the Spokane Association of REALTORS® and to the best of our knowledge is accurate and current.
July 2021, as compared to July 2020. The information in this report is compiled from a report given by the Coeur d’Alene Association of REALTORS® and to the best of our knowledge is accurate and current.
As impressive as the figures are in this month's Market Snapshot, Spokane's real estate activity gains even greater stature when we place it in a nationwide perspective. Note the exception in Item 5, where Spokane lags far behind the national average, due in part to the legal restrictions placed on the construction industry. 1. Median Home Price (20201 Q1) Spokane: $337,500 | US: $313,533 2. Total Equity Accrued to Owner Since 2016 Spokane: $162,199 | US: $117,278 3. 12-month Job Growth Rate Spokane: +9.2% | US: -4.0% 4. Annual Economic Activity Index WA State: 18.1% | US: 7.7% 5. Single Family Permits Year to Year Spokane: 4.0% | US: 29.0% 6. Ratio of Avg Mortgage Payment/Income) Spokane: 12.1% | US: 18.0% If you want a fill copy of the report, reach out to your Tomlinson agent. Figures provided from report by NAR
CONTACT ME WITH ANY QUESTIONS OR FOR DETAILED MARKET INFORMATION.