Headed towards a disastrous real estate market for 2023?
With interest rates rising this year, home starts and mortgage apps down, wars, rumors of wars, and pandemic 2.0’s…there could be some potentially disastrous events on the horizon.
Most “real estate pros” think that because the lending tightened up over the GFC crash that we won’t have some deep nose dive in the market.
And somehow it’s “different this time.”
However, as Doc Brown in Back to the Future reminded us, “you aren’t thinking 4th dimensionally.”
What causes one crisis almost never causes another one.
The next crash will come because of massive currency printing and booms and busts of inflation/deflation that will make the markets either spend or hold their currency and this is where the next real estate crash will emanate from.
Namely, keep an eye on the credit markets (debt or bonds) as this is the market that runs the world. The crazier the gyrations get the more problems we will have.
The next administration will probably double the currency printed over the last 4 years, which was already double the last administration.
Student debt getting canceled which will almost certainly happen and something we predicted 10 years ago will only drive prices higher as more eligible buyers enter the market.
That being said, with the trade wars, currency wars, interest rate changes, student debt bubble, credit card bubble, and bond market bubble all at our fingertips it is anybody’s guess as to what the overall economy is going to look like by the end of the year.
Stay tuned, for 5 years now we have been giving you the BEST and most pertinent information possible at all times. This is our job. It is the only way we know how to serve our clients best.
If you’re looking to navigate this market please don’t hesitate to reach out. We do the hard work and research so you don’t have to.