Spokane home prices on the rise

SPOKANE, Wash. - 21254790

Is it a sign of the economy coming back, or a warning about an impending bubble? Home prices are on the rise nationwide to levels not seen in years.

Nationwide, home prices jumped 12.2 percent in May. The biggest jump in a year period since March 2006, near the peak of the housing bubble. Dallas and Denver saw record levels, even surpassing peaks reached during the housing boom.

Spokane has seen an uptick as well. Home prices are up 5.9 percent year-to-year, and the median selling price is up to $162,500.

Spokane Association of Realtors President Marianne Guenther Bornhoft showed us the home priced $122,000 at 3928 North Calispel. Bornhoft says it's one of many homes where the price is more than it would have been a few years ago.

"The number of homes being actually sold every month, is really going through the roof right now," she said.

Those numbers made Dan Bowden more willing to sell his home.

"Knowing the home market's up, everyone's willing to buy, and it's a good month," Bowden said.

Bowden renovated his home in a year, and now wants to move to Phoenix to be with his fiance.

"We're getting good showings...we've been on (the market) for 11 days, and everything is going great."

Bornhoft says the interest rates are still at historic lows, so it's also a buyer's market. She believes housing prices will continue to improve, and homes will continue to move quickly.

"We're not going to see the huge leaps and bounds that we've seen in the past, but we're definitely going to see a healthy normal market," she said.

Bornhoft says inventory is down about one percent across Spokane which also helps raise prices.