Spokane 2023 Housing Forecast: What to Expect

The real estate market is always changing. Anecdotal evidence and economic trends combine to create a unique demand for housing. It's important to stay informed of what's happening in the real estate market so that you know when it's the right time to buy or sell a house. But what should you expect in 2023? Here's a look at some of the key factors that may impact your housing decisions next year.

Home Price Appreciation Will Vary Depending on Location

The housing market varies greatly from region to region, city to city, and even neighborhood to neighborhood. Home price appreciation will depend on the specific area you're looking at—some markets will have higher appreciation than others in 2023. This means that you'll need to do your research before making any decisions about buying or selling based on expected prices.

Mortgage Rates Will Respond to Inflation

Inflation affects mortgage rates, which can have a significant impact on your ability (or inability) to purchase property and qualify for financing. As long as inflation remains low, mortgage rates should remain relatively stable throughout 2023; however, if inflation begins to pick up, mortgage rates could rise sharply and quickly change the affordability of homes in certain areas of the country.

Home Sales Will Moderate Compared To 2022

There was an unprecedented level of home sales activity in 2020 due largely to historically low interest rates and pandemic-related restrictions that drove people out of major cities into smaller towns and suburbs. While there is still expected to be strong levels of home sales activity overall in 2023, they are likely going to moderate compared with this past year as more buyers wait for better deals and more sellers wait for higher prices than they were able to get in 2020 or 2021 due to high demand and low inventory levels.

2023 will be an interesting year for the housing market! With potential changes coming from all angles—location-specific home price appreciation, mortgage rate volatility caused by inflation, and moderated home sale activity—it's important that you stay informed about what's happening so that you can make smart decisions about buying or selling a home when the time comes next year. Be sure that you do plenty of research before making any moves!