Market Guidance from Our Real Estate Coach of The Estates LLC.

[David Ginn]

In the past, I've given you quarters in which I think the market is going to start to correct today. What I want to do is update you on that and let you know that my market predictions primarily are based on one key indicator amongst others. But they kind of all trail this one and that is we believe that when they release the foreclosures onto the market, once the foreclosure moratorium has stopped and it is no longer restricting the amount of supply that is going to the market then that's going to be a key indicator into when the market is going to start to correct. That date has been moved several times and the new date is December 31st, 2021.

So the majority of the inventory that will come back onto the market based on foreclosures and the shadow inventory that the banks are currently holding onto will happen in Q1 and Q2 of 2022. So that's where we will start to see more of an increase of supply as well as new output levels for new home construction right now. They're saying that there's a 15% increase in new home construction as the new home construction and the foreclosure inventory start to be released into the market. Then that will start to correct on the supply and demand and the more that we have an overabundance of supply naturally the demand will go lower because of the supply. At which point we'll start to see the market correction. So right now I'm tentatively looking at that market to start to correct where you will see it somewhere in Q1 and Q2 of 2022.

Now there are underpinnings of the market already collapsing and that's been discussed by several economists in the country. Those you won't directly see until it affects your particular situation. So more of the number that I'm speaking to is what is going to happen and when will you see it and how will it start to correct based on the numbers falling.