Housing Market in a K-Shaped Downturn | Spokane News

Spokane News Today | 2 Min | The Daily News Now! · Aug 11, 2026 · 1m

Home sales keep falling as mortgage rates climb, pricing out buyers and tightening an already scarce market. Many homeowners stuck with pandemic-era low rates can’t afford to move, worsening the shortage. While luxury homes soar in sales, starter homes struggle — a classic K-shaped economy fueled by stock market gains for the wealthy. July saw a 1.7% drop in sales, with mortgage rates hitting their highest since 2025. First-time buyers are shrinking in number, but small business optimism is surging — sentiment at an 11-month high, with more owners planning to hire, hinting that job woes may…