2023 Predictions? What are your predictions?

[Kenny Simpson]

Here are my predictions, would love to see what your predictions are?

Rates - Mid 4 to low 5% by year end on conventional

Real Estate Market – Overall market down, some markets worse than other, some submarkets will do OK and other markets ending the year lower. 5 to 10% correction on the average.

Best Investment opportunities – First time home buyers get lower prices, closing cost paid for and repairs fixed or credit. Buyers assuming FHA/VA loans at low rates seeing this already, 2-to-4-unit properties already seeing discounts and good deals happen in San Diego. Commercial 5+, Not seeing much yet in San Diego market, CAP rates still too low for how high interest rates are.

Best Market - Florida

Worst Market - Arizona

THE FED – Start cutting rates slowly by the end of the year.

Recession – We will see this really show up by the second half of 2023. Jobs losses, consumer pull back and real estate market seeing more pain.

Jobs – unemployment ending the year around 5%

[Mike Dymski]

If rates are in the mid 4s to low 5s, there will be no concerns regarding a housing correction.