LA Housing Market Update - Is a recession coming?

There is no crystal ball on this issue. Some experts say a recession is coming, other's say that it's not. An LA Times article sites that "4 in 5 Americans expect a recession this year." While this is speculation, my job is to keep you informed.

A recession is an indicator of the health of the real estate market. Fannie Mae predicts that a recession is likely to hit in the second half of 2023. "Eventually, this will lead to a deceleration of the historically high home prices buyers have been saddled with for the past few years, as high mortgage rates pull more prospective buyers out of the market. But while the housing market is unlikely to cool enough for the economy to crash as it did in 2008, the decline in home sales will be enough to contribute to a moderate recession and economic contraction."

On the other side of the coin, President Biden states that a "recession is not inevitable." Other experts say, if a recession does indeed happen, it will be a mild one.

What do you think will happen?