In 2017, the median price of a single-family home in Spokane, Washington, dropped from $500,000 to $360,000, according to the National Association of Realtors.
But a year later, the number of homes selling for $350,000 or more rose from 15,000 in January to almost 33,000 this year.
The median price has gone up more than 20% in the last six months, according the Realtor.
Many people have bought homes for the first time this year because they want to start their own business.
That’s helped many people buy their first home on the cheap, said Jim O’Connor, a real estate broker and the founder of O’Conner Real Estate, a Spokane-based real estate services company.
O’Connors home is now worth more than $450,000 and he’s selling it for $360 of its $375,000 asking price.
But O’Brienns first purchase came in October, when he bought his first home for $100,000.
He is now selling it on eBay for $600,000 less than what he paid in the beginning.
“I didn’t think this was going to happen.
But it has,” he said.
The boom in sales of single-home homes, however, has created some headaches for real estate agents and city planners who are trying to figure out how to regulate the new phenomenon.
The housing boom has created a new problem for realtors: The high demand for homes.
The average price of one-bedroom apartments in Spokane is up 27% since the housing bubble burst in 2007, to $1.2 million, according.
But the average price for a two-bedroom apartment is down more than 18% since then, to about $1 million.
That means a single person could sell their home for more than they paid in 2007 and end up paying about $2,000 more in taxes than they would have paid.
OConnor said the new trend has created “bubbles” of luxury condos and townhouses in Spokane that were previously sold for $400,000-$600,00.
He said the average sale price for condos in the city this year was $1,250,000 but could be as high as $2 million.
It’s not just single-person homes that are selling for more.
The number of single family homes in Spokane has soared from 6,800 in 2010 to more than 15,600 in 2017.
O’Connor said he has seen some people sell their single family home for as much as $1 billion in sales, more than the value of the entire city.
Oftentimes the buyer is just looking to buy a place they can retire.
But there are concerns about how many people are buying single-income homes.
When the recession hit, many people moved back to the cities and suburbs and those who did have properties, often had problems with the foreclosure process, O’ Connor said.
Many homeowners are being pushed into the market, he said, and they are often buying properties that are undervalued.
“It’s a lot of the new homes that we’re seeing that are being sold for less,” he added.
The city has passed a measure that would require all properties sold in the next five years to have a buyer guarantee.
That would make it clear that a buyer has to have an income to buy the property, and there is a $2.5 million cap on the amount a buyer can pay.
The measure has been introduced in the Spokane City Council, but the mayor has not voted on it.
O Connor said he is concerned that some sellers are using the legislation to take advantage of homeowners.
“We’re seeing some people with money get out of the city, sell the home for less, and then try to make their money back from the buyers,” he explained.
The problem is, it’s a new trend that is going to go on for some time, he added, and the new owners will take advantage.
One of the biggest challenges is finding buyers.
The National Association for Realtants said the demand for single- family homes is outpacing supply.
According to the organization, more people are moving back to cities and the suburbs than ever before, and that number is expected to rise.
OConnors estimate that between 15% and 20% of Spokane’s population could be affected by the new housing market.