The current state of the housing market fascinates me! The rate at which home prices were rising last year reminded me of how quickly home prices rose prior to the financial crisis of 08′. It was eerily reminiscent and can’t help but make me question the sustainability of such rise. I think they will fall quite a bit but by how much is the question.

The photo above summarizes what pretty much happened.😅

It is one of those moments in time, I believe we may get some great life changing opportunities. I remember purchasing a car back in 2011, when dealers were bending over backwards for my business. I recall saving about $8,000 on a brand new car. The dealer lost money on that sales as many were desperate to get the cars off the lot as consumers pulled back sharply.

Perhaps if lucky, I will get another great deal on a car! 😅

The goal is to stay prepared to grasp any opportunities that may arise!

Time for a quick update!

Notes

I think FED’s may pause rate increases or slow them to quarter basis points towards the end of this year. The Feds clearly communicated that they do not wish to erase the progress they have made in the labor markets. Consumers are getting tapped out and pulling back spending. Labor demand is softening. Commodity prices continue to drop. Consumer borrowing costs are rising rapidly. Corporations are getting cautious slowing down hiring, reducing capex, slowing buybacks, softening dividend increases and lowering guidance. Too many early signs that may lead to a sharp reversal.
I expect inflation to moderate towards the latter half of this year.
I expect fed funds rate to end the year at about 3% to 4% (Revised).