Three Headlines from Yesterday

As you are aware, we are constantly trying to seek out good information about the real estate market to figure out which direction things are heading.

One of the sources I rely on as a real estate broker is a company called Inman. Founded by Brad Inman in 1996, they have become a leading resource of news, analysis, and information for real estate professionals as well as consumers.

The message is blunt: Real estate leaders anticipate a tough 2023.

“Inman's first-ever Intel leadership survey revealed that leaders think the market will be worse in 2023 compared to 2022.”

Another source that came out yesterday as well was from Fannie Mae’s Economic and Strategic Research Group, led by Chief Economist Doug Duncan. (Pictured here with myself and Jana)

Doug's group has earned a reputation worth following as it was recently awarded the prestigious 2022 Lawrence R. Klein Award for Blue Chip Forecast Accuracy based on the accuracy of its macroeconomic forecasts published over the 4-year period from 2018 to 2021.

Housing Sentiment Returns to Near-Survey Low Amid Affordability Constraints and Job Security Concerns

Fannie Mae's National Housing Survey shows Americans were feeling less secure about keeping their jobs in February, and nearly 8 in 10 think it's a bad time to buy a home. 

Home Purchase Sentiment Index – Component Highlights
Fannie Mae’s Home Purchase Sentiment Index (HPSI) decreased in February by 3.6 points to 58.0. The HPSI is down 17.3 points compared to the same time last year. Read the full report here for additional information.

And Finally….

U.S. Stocks Plummeted Tuesday after Powell said during his Senate Banking Committee testimony that interest rates may rise “higher” than previously expected as the Fed continues a persistent fight against inflation.

Rather than going into more detail, we think these headlines speak to what's ahead. In residential real estate, we are definitely seeing prices continuing to trend down and longer days on market. We are still optimistic about what lies ahead because there has been no decrease in demand. People are simply holding back due to the current state of the economy, inflation, fear of job loss, and rising interest rates. As we have been saying all along, if and when the Fed is forced to pivot and drop interest rates, there should be some good buying opportunities ahead for those who are prepared.

More to follow…

If you have questions about any of this or would like to learn more about taking advantage of the possible financial opportunities that lie ahead, please reach out to us or schedule a call.

Investing for Impact,

Randy Hubbs