2022 will be remembered as the year almost every asset reversed direction and headed south HARD!
What will happen to prices? I see three scenarios playing out depending on the policies we implement in the next two years.
Scenario 1: Real estate down a certain % in one year
Scenario 2: Real estate down a certain % for two-three years
Scenario 3: Real estate down a certain % for five years
Every category we use to determine if peak real estate prices have been reached peaked out at 5% interest. When interest rates reach 7%, you’ll already have the fuel for a downturn in price locked and loaded! The policies implemented by the Fed and this administration will determine just how bad this gets. The Fed could
- Raise rates and reverses course when a recession shows up
- Pursue ever higher interest rates to squash inflation, then we would have a longer journey
- If the administration does nothing to become energy independent in the next few years and prices of fuel continues to soar and create inflation, that sets up the worst-case scenario
Bruce will go over all the scenario’s and possible solutions. You are not going to want to miss this.
