What experts expect from the economy in 2023
Cloudy with a chance of WHAT THE???!!!
Okay. So it's definitely a strange time out there.
With a significant increase in interest rates, inflation on the rise and a general sensation of what on earth is going on, I'm sure we're all interested in what the economy has in store for us this year. Listen to this week's Lady Landlords Podcast episode to hear what experts expect to see in 2023.
We recently spoke about the increasing interest rates and whether it's an excellent time to buy or not here.
It's true that things have been on the rise and show no signs of slowing down. I believe we will continue to see interest rates rise over the next 12 months. Higher interest rates increase the cost of borrowing money, making personal loans, credit cards and mortgages less accessible to many people. With that being said, if purchasing a property is something you are aiming to do this year, it will be wise to buy sooner rather than later, to avoid falling victim to any further interest increases.
Even as interest rates rise, there is no guarantee that housing prices will drastically drop, despite some predictions that they will. But, the effect that this increase will have, I believe, will ripple out into consumer spending habits, and I can imagine that house sales will be down in 2023, causing house prices to fall… eventually. And perhaps not even by a lot.
But this would all depend on whether we enter a mild recession as currently predicted in Fitch Ratings' current economic outlook, even though consumer spending is growing, and job growth remains strong.
If we were to fully enter a recession, things would really get funky.
House prices would fall, but affordability would be at its worst. This gives buyers the upper hand, forcing sellers to have no option but to accept lower offers, benefiting those who are only buying and not having to rely on profit from a sale.
With many buyers not financially able to purchase, if things continue to skyrocket, the rental market will pick up.
2023 will have a lot of ups and downs and everything in between. Keep up to date with all you need to know by joining our Lady Landlord Facebook community here!
🌟 The cost of borrowing money will still be high
Don't let high rates deter you. Plan accordingly.
🌟 House prices will fall eventually
Meaning you can get a good deal on a potential purchase.
🌟 Keep up-to-date
Knowledge is critical, so it's time to listen, learn and act to the current and future economic conditions.
Ready to take control of of your portfolio? See if the Lady Landlords Mentorship is right for you here.