Richard Uzelac’s Real Estate Forecasts 2nd Half of 2022 and 1st Half of 2023
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Richard Uzelac’s Real Estate Sales costs predictions
We have runaway inflation, historically high gas prices, and a Bear stock market. So, prices will go down, right? Wrong.
Real Estate in high demand, low inventory markets, specifically the wealthier metro/suburban areas, will continue to increase in price by 5 to 8% over the next running year.
Housing costs, like everything else these days, are oblivious to the other factors in the country. People who want to live in nice trendy areas will have the money to pay for the increased prices, and they don’t care. Expect no deals in any hot market for at least a year.
Suppose the Republicans get back into power this November. In that case, we can expect improvements in the economy with more sound environmental, global conflict, and boarder protection policies in the first half of 2023. The IMF will probably reduce interest rates to open business and reduce inflation levels for 2023. American has a chance to get out of the madness and move on. All these factors look like price increases in the real estate sales prices for the next few years. Even if the Democrats keep control of Congress, prices will go up, but maybe less quickly.
Less in-demand markets, middle America, and other areas will show a slowdown in the real estate sales market. Where income is more acutely worn down due to inflation and a stagnant job market, prices will come down slowly at first, then quicker as demand lessens.
Another market is the fleeing from blue markets to red markets, California to Texas, Florida, and just about anywhere else will continue. The blue markets will survive this due to a lack of inventory and demand, and the red markets will ‘enjoy’ constant price increases. Should those red areas turn blue, we could see a reversal of this, and prices may come down in the next few years. Where will people run to then?
Richard Uzelac’s Rental Market Predictions
The Rental market in high-demand areas will increase even more. Rentals in LA, NYC, and other large metro areas will skyrocket by over 10% in the same time frame. In LA, the law allows for up to 5% AND another 5% due to inflation, so, gulp, 10%.
“Where are people supposed to live?” -Don Henley.
High-demand metro areas and their beautiful suburbs will still be in high demand, and rental prices will constantly increase over the next decade; that is my prediction, and I’m sticking to it. High-demand areas are in demand from a wealthier demographic, and they can afford to pay up to live in their cool Starbucks neighborhoods. Many that would have bought in these areas will not be able to qualify, so they will be paying an inordinately high percentage of their income for rent. Many of these people will be younger or immature mentally, or they have Mommy and Daddy’s help to make ends meet.
“The divide between the haves and the have-nots is forever widening.” – Richard Uzelac.
Rents in the less in-demand non-A-List cities and suburbs will see lower rental increases and will be able to afford these lesser in-demand rents. These people also have been somewhat driven out of the purchasing market due to inflation, high-interest rates, and poor decisions in life. Older renters may be fleeing the high-rent districts for lesser in-demand areas as they retire. These people will be happy to save 35% on their rent and live in a smaller, quieter, safer area in their old age.
Richard Uzelac’s Covid-19 Effect on the Real Estate Market
There is something else going on nationally due to the Covid-19 hoax and hysteria. People of working age are working from home in unprecedented numbers. Fauci’s fake science sent millions fleeing their offices to set up shop in their homes. To this day, all those with office jobs that basically sit at their computers all day still work from home, if they can. How does this affect the market? Well, if you had to live in Los Angeles so you could commute to work in the worst traffic areas on the planet, then you lived near your work. But guess what, if you can ‘telecommute’ from your crappy inner-city apartment or condo, well, now you can do the same in some nice quiet, safe suburban home and live a much better life. This market of fleeing the democratic hell holes of major American cities helps in many ways to give those lucky enough to work from home the options of home ownership, driving up the prices of those safe suburban zones. This ‘Covid-19’ city dwellers turned suburbanites will be strong for the next few years as more and more crime tears apart the cities and people realize more and more that they ‘don’t have to put up with this sh*t’ anymore.
“Well, this is my prediction for the next year. You can take this to the bank as I’m really good at this stuff, ok? Trust me; it’s in the bank.” – Richard Uzelac
Richard Uzelac, CEO and Founder of Realty Tech
Inc - Provider of most beautiful Real Estate Websites, IDX and Real Estate Leads since 2002 and GoMarketing
(Professional Online Marketing Programs)