2023 Predictions and 2022 Results

Last year Clear Sky Financial was correct on many predictions.?We predicted that inflation was not temporary and that it was permanent (contrary to government beliefs).?We predicted rising interest rates.?We also predicted that the residential real estate market would slow.?All these things came true for 2022.?The only thing we were wrong about was the collapsing of the office space sector and the slowing down of the rise of industrial properties.?Below are our predictions for 2023.

1.?Interest rates will keep increasing until the end of Q1.?

Once the threat of interest rate increase subsides the residential market will normalize and prices will stop dropping.

2.?Residential prices will decrease in many subdivisions and neutralize in others (subdivision specific).?

This is a true subdivision market.

3.?Inventory will increase in the residential market.

4.?Foreclosures and distressed inventory will be up in the residential space.

5.?Prices will DRAMATICALLY decrease in the Class B and Class C office space sector.?

This will be due to the fact that there is and continues to be an oversupply of Class A space being built.

6.??Foreclosures and distressed inventory will be up in the Office Space sector.

This is due to current owners having to refinance their properties into a smaller credit window and rising interest rates.

7.?Industrial property demand will stay steady.

8.?Hopefully Basement Tales will resume in 2023!

As you can see we are in for a turbulent 2023.?With that said it should be a GREAT environment for real estate investors.??The key word for 2023 is PATIENCE! Keep these predictions handy and compare throughout the year!