let's jump right into this. The housing market, everyone is saying, oh there's gonna be *** crash, The prices are coming down. Is that true? Our prices actually coming down or is this one of those rumors of my demise have been greatly exaggerated. There are some price reduction, but the price reductions are coming from *** very high list price. So once the home is transacted, you know the market price, it is still above one year ago and we still have *** housing shortage. The market is not as hot as what it happened just one year ago. Uh, Nonetheless, homes are still selling quickly and prices still above one year ago. I think *** lot of us forget that back before Covid. In normal times you'd have to put your home on the market and it would sit there for *** month, maybe even *** month and *** half, two months before you would sell. And that wasn't weird. Now, all of *** sudden we have to wait *** week and it's like, well I guess that's all done. You know, in some market for example, in California, they have seen an increase both 40% in the days on the market. So now it is five days on the market. So that's how we are moving into today's market condition from super fast, still very fast condition. So the market is not crashing just to be clear. I mean prices are still there stabilized or even still growing just at ***, you know, *** little less like this and *** little more like this. Uh, it's *** rising, but at *** slower pace than before. Got it. Okay, So is it *** buyer's market right now or *** seller's market? I would still say it is seller's market, the inventory is still short. Uh, the buyers, the multiple offers are still around not as intently as before, but multiple offers still happening The days on the market nationwide, less than three weeks or very swift pace. But the mortgage rate being so high, it essentially pushed away some of the marginal buyers out of the marketplace. I'm glad you brought up mortgage rates. So the Fed has increased 75 basis points to Fed meetings in *** row. But sometimes I see that the mortgage rates actually drop *** little bit. What's the correlation there between the Fed interest rate and mortgages? Because how is it? I think it was like the day of the last 75 basis point increase. The mortgage rates actually dropped *** little. I think this is *** very good question because all the consumers and even realtors are confused at times because the correlation is not really direct. Uh, over *** long time span, there is some correlation. Now, the mortgage rates were essentially 3% last year today, above 5%. But this above 5% has already incorporated multiple rounds of rate increased by the Fed. So when the Federal Reserve actually announces and with *** new policy, the mortgage market saying, oh, we already knew that no big deal got it. So they're pricing it already and they're probably pricing and even more hikes for the end of the year because the Fed has already said they take august off, but they come back in september, they've already said they're gonna probably raise it some more. We just don't know by how much so inflation is the key. So once the inflation begins to show some slowing down condition, that means that Fed will not need to be as aggressive or any new surprises, which means that mortgage rates may be topping out at the moment roughly 5.5% out, Don't see it surpassing 6% towards the year end. But this would be sort of the new normal and definitely not the super low 3% rate of the past two years. Right? So it's actually still pretty low rate, we've just gotten used to 2%, I bought my home when it was 8% 1 of the best decisions ever. My parents bought their first home when the mortgage rates were at 15% 1 of their best decisions ever. So if people are in for the home buying for the long haul, people buy, build wealth and they can always refinance downward because mortgage rate goes up and what do you know it also goes down, what are your thoughts about an adjustable rate mortgage? *** five year arm, seven year arm versus like *** 30 year fixed in *** situation like this. Uh the adjustable rate mortgage does offer *** little better chance to get in the market because the interest rates are *** little lower. So people who may are buying starter homes, who typically live for five or seven years and then they move into their next home. So for these individuals, at least for the first five years, the monthly payment is fixed, it's not rising unlike rents. So it may be an idea for people who think that they will not be staying for *** very long period and they can enjoy those sort of lower rates And at the same time they are entering the market at slightly lower interest rate than the 30 year fixed rate mortgage. So I don't want to go through this for *** buyer and *** seller. If you're somebody who owns *** home right now and you're thinking about selling in the next couple of years, put it on the market now or wait, well, you know that the lifestyle changes always occur. New job at *** different location, Maybe *** person is getting married or divorced or person is retiring. So these circumstances always drive the sellers as to when they need to sell. So it's not *** market timing issue, but life changing issues that determine the seller and the seller just need to be very realistic about today's changing markets circumstance, their neighbors who sold their home two months ago. So they think, well, I can get the same price. Maybe not, maybe will still be better than one year ago, but maybe it's not as strong as what their neighbors home sold for just *** few months ago. And I'll ask you the same question for buyers. If I'm *** buyer right now, should I be if I want to buy *** home in the next year or so, should I be doing it now or waiting? There is less buyer competition in the marketplace. So if the home is right, uh, and one can do better price negotiation. And some home sellers, depending upon their situation, may be willing to negotiate on the price is, but as person waits for *** longer period, I would say most likely they're still going to face higher prices and not get that will build up, but there will be more inventory choices in the future years. What are you predicting for the fall For the autumn? Things will calm down. Home. Sales have been falling for five straight months. But I think most of the declines have already occurred. So then afterwards, it will be small increase, small decrease while home prices will continue to increase, but at much slower pace. So by October November December period, prices maybe of only four or 5% compared to comparable period the year prior. What were they up *** year prior, He was up in the 15%. That's incredible. People made *** lot of money. Uh, not only last year, over the past two years or someone who entered the market uh in the early months of this terrible covid environment? Uh If there's one civil lining is that people who brought home, they locked in those low interest rate and they are getting all this housing wealth from price gains 20% 30% over *** two year time span. Let's talk about rentals for *** moment because the rental market is on fire right now, right, less people buying homes means more people having to rent homes and apartments. Uh What is your outlook for that? Because leases are just out of control right now, the vacancy rates are low. In fact, it was low even before the onset of the covid. So we had *** housing shortage. Uh And then we lost jobs during covid initial months. But with each passing month. Since then, as the lockdown was lifted, more job creation, more job creation and people got tired of living in the basement of their parents home. So they're seeking *** rental unit, Maybe somehow they could buy *** home. But now interest rate being much higher, they have to renew their lease. So the vacancy rates are at historic low, consequently rents rising very strongly 6% from one year before. Uh and I think it, what is your advice to people who are sort of in that situation can't afford to buy *** new home even though they wanted to because the interest rates going up, they have to sign *** new lease. How do you talk to your landlord? What what kind of rent increase should I expect? And you know, how do I negotiate the lowest rent possible? You know, it depends on the local market conditions in Florida, increase. People may see some relief after seeing some 15% rental increases. So it depends on the rental market, but nationwide is about 6% increase in rent. But one way to possibly reduce the rent is to say, look, I see the water faucet not working properly or maybe Certain things to be fixed up rather than asking the landlord to fix it, say I will do it. And that will certainly make the landlord much happier and maybe even willing to reduce the rent. Uh and also the longer term lease. So *** person feels that they will be renting for the next 18 months, sign for 18 months rather than for six months, which gives more uh certainty to the landlord. That's great advice. Any other advice I'm missing? Uh So the housing market we are short, but I think steadily as with more inventory comes onto the line, things will be better in terms of housing affordability for both buying and renting