In 2016, my wife and I moved to Spokane, Washington from Austin and we were excited to find a home on the South Hill near Manito Park. The area was beautiful we hoped that our equity from our home in Austin would be the difference for getting into an old craftsman in this historic area. Then reality hit us when we realized we were priced out of the area. Our budget was $250K and virtually everything was higher. Buying a home on a busy street was our answer.
Location, Location, Location
This is a classic line for realtors and Dave Ramsey. It is a cliche, but it’s incredibly true. A great neighborhood like the South Hill in Spokane or the North End in Boise is the kind of place that is always headed up and constantly has strong demand. The trick is finding something that causes others to pass over a home in these neighborhoods. In our case it was the fact that the home was on a four-lane road.
Japanese Gardens in Manito Park – Right in the Heart of Spokane’s South Hill
What is the right compromise?
For us, a house on a four-lane road was the compromise we were willing to make. Our bungalow was blocks away from a beautiful park and walking distance from one of the best elementary schools in the city. There were plenty of other benefits to this move. We looked at several houses that would have been complete overhauls and that was too much for us. We also saw houses that had weird layouts. Those weren’t compromises we were willing to make even though they may have still paid off in the end for the investment.
Don’t be Scared of the Dropping Price
In order to find value in the housing market, there has to be a price drop. This seems obvious, but dropping prices also have a tendency to create a stink on a house. It’s easy to start to wonder what others are seeing that you might be missing. When we bought the home on the four-lane road it was on its third price drop. I looked at the massive backyard and the refinished interior of the home and then I felt the doubt creep in. What was I missing? What had others seen?
The simple fact was that it was a home on a busy street that had scared most people off. Most people hadn’t even checked the home out. I wasn’t missing anything. I had just found a deal.
Homes on Busy Streets Go Up in Price at the Same Rate
Our home will not sell for the same price as similar bungalows just blocks away on the quiet neighborhood streets. However, it still goes up at about the same rate as the surrounding neighborhood. The neighborhood has gone up in value at a higher rate than the surrounding areas in Spokane and so that is what matters for my investment. In the end, this was a win over what we would have gotten from other parts of Spokane and even beat out the growth on the home we sold in Austin.
Why is this important right now?
The main thing I hope anyone gets out of this article is that it pays to be open to homes that others may shy away from. Whether it’s a home on a busy street or a granny house with terrible wallpaper. Going into 2025, the housing market is softer than it was when I found my home in 2016. Homes that aren’t nicely dialed in tend to drop further then they should. There is value out there to be found even in high demand neighborhoods.
By: Chris Bemis