Spokane, Wash., Singled Out as One of Nation’s Strongest Markets

Spokane, Washington, is among a few metropolitan areas being profiled in the U.S. Department of Housing and Urban Development’s quarterly report.

The U.S. Housing Market Conditions report will feature profiles of mortgage and housing activity in cities representing 10 regions throughout the country.

Spokane’s story will be posted on the HUD User Web site sometime in the next month and highlight a strong, sustainable segment of the Washington housing market, according to HUD economist Sondra King.

“Spokane has a positive story. You have population growth, and you have good job growth going on,” King said.

While the Seattle housing market is mired with conflicting data, it’s all been positive in Spokane County, which added 10,200 jobs from October 2005 to October 2006 — representing a 4.5 percent gain.

From 2004-2006, the area’s two-year appreciation rate for real estate rose by more than 30 percent.

While many area residents lament record home price increases that make it tough to enter or upsize in the market, King said the area remains relatively affordable when compared to many other cities.

In 2006, Spokane County’s median home price was $184,100, while the national median home price was $222,000 - making the area prime for Washington mortgage applicants.

King said the HUD report typically profiles large cities, such as L.A., Dallas and Boston. But Spokane stood out as having a brisk but affordable housing market, the opposite of the “burst” that some areas are facing.

King’s hometown of Columbus, Ohio, experienced growth in new construction, but older homes sit on the market because there hasn’t been an increase in jobs to bolster the population.

In the past few years, positive publicity has put Spokane on the map for attractive home loan destinations throughout the U.S. The city has turned up in several magazine articles featuring lists of best places to live and do business.

Recently, Forbes magazine ranked Spokane 20th as one of the best places for business and careers in the country. HUD’s quarterly report will reach a national audience that includes company analysts, mortgage bankers, investors, Realtors and social workers.

Other articles mentioning Spokane have focused on the economy and job growth, but the HUD story will highlight the area’s affordable housing market, said Jeff Zahir, regional labor economist for Washington’s Employment Security Division.

The different twist on Spokane and the audience the HUD story reaches could translate into more companies moving into the area, bringing jobs along.

“We do have some competitive advantages when compared with other cities,” Zahir said.

SOURCE: Spokesman-Review