Takeway from Biggest Real Estate Conference 2023 (Patreon)

A real estate specialist and a portfolio manager at one of the largest hedge funds globally, I have heard the phrase "plane engines are off" used to describe a market downturn several times. 

While I cannot verify the accuracy of this statement, I can say that if mortgage rates approach 8%, it would undoubtedly cause significant distress in the US real estate market by summer 2023. Other global markets are trying to keep a lid on rates. 

While there were signs of a rebound in January, it was short-lived. Unfortunately, people are relying heavily on credit cards, and their wages are not keeping up with inflation, resulting in little to no savings. RE Sales have dried up. Refinance is non existent. 

Shockingly, debt is increasing exponentially while savings remain at zero.

Another example, the average monthly mortgage payment in Atlanta has gone from $320 in 2012 to just under $2,000 now

Something is going to break.