Chief economist for Florida Realtors® : “As supply and demand become more balanced, Florida housing should
revert to a more "traditional" market like in 2018–2019.”

What should buyers, Realtors®, and decision-makers anticipate regarding Florida real estate during the coming
year? Florida Realtors® Chief Economist Dr. Brad O'Connor spoke to almost 500 Realtors® last Thursday at the
2023 Florida Real Estate Trends conference about how the housing market in Florida suffered in 2022 after the
unexpectedly excellent years of 2020 and 2021 despite an ongoing pandemic.

Now, he said, the residential real estate market in the state will resume its normal pace. As supply and demand
become more equal, "I predict 2023 will look more like the 'typical' housing market years of 2018-2019 in
Florida."

At the Renaissance SeaWorld Orlando, the occasion was a part of this year's Florida Realtors® Mid-Winter
Business Meetings. John Leer, the chief economist of Morning Consult, who analyzes high-frequency survey
data to gain insights into consumer views and concerns, participated in the summit in addition to O'Connor.
Leer is in charge of the company's economic data collecting, validation, and analysis in addition to leading
worldwide economic research. He is a specialist in how customer preferences, expectations, and experiences
affect shopping habits, wages, and employment.

Additionally, a panel of Florida Realtors'® SunStats users discussed how the resource benefits their business. The
panelists were John J. Adams, president of Adams, Cameron and Co., Realtors®, Kara Wisely, broker associate
with Berkshire Hathaway HomeServices Florida Realty, and Peter West, broker/managing partner of Bishop
West Real Estate. The moderator was Jennifer Warner, economist and head of economic development for
Florida Realtors®.

Chief economist for Florida Realtors®, Dr. Brad O'Connor
Is a price adjustment imminent? is one of the main queries on the minds of real estate experts, purchasers, house
sellers, and other people right now.

Both supply and demand affect prices, according to O'Connor. "A significant correction requires a flood of
supply in addition to falling demand. This resulted from overbuilding and defaults in the previous housing
cycle. And for a number of reasons, it's doubtful that there will be an abundance of freshly constructed homes
on the market.

First, there are presently fewer homebuilders than in previous years; second, builders are more cautious when
taking on new constructions; and third, home developments are taking longer to finish. Homeowners who are
reluctant to sell their property and purchase a new one because they anticipate paying more for the new home
owing to rising mortgage interest rates are also having an impact on supply.

So while some homeowners may feel "locked in" to their existing property and mortgage rate, this isn't the case
for all of them. Active listings are increasing, and closed deals are still happening. And prices will begin to ease
or relax, albeit we won't notice a significant decrease until there is more supply on the market.
Even if recent economic data indicates the Federal Reserve's work to combat inflation looks to be having a
the beneficial effect, O'Connor predicts that inflation will still be an issue in 2023. In the upcoming months,
Florida's buyer demand will continue to be hampered by high insurance prices, rising mortgage rates
(particularly if they reach 7% or more), and general economic unpredictability that lowers consumer
confidence.

Mortgage rates would decrease, but how much depends on a variety of circumstances, he added. "All of the
current projections for existing house sales in 2023 depend on the 30-year mortgage rate, which is uncertain at
the moment.

Recent 2023 forecasts for U.S. existing home sales compared year-over-year to 2022 include:

National Association of Realtors® (12/13/22): Existing home sales fall 7.0% Y/Y in 2023

Fannie Mae (12/12/22): Existing home sales fall 21.1% Y/Y in 2023

Mortgage Bankers Association (12/19/22): Existing home sales fall 13.7% Y/Y in 2023

Redfin (12/6/22): Existing home sales fall 16.0% Y/Y in 2023

Realtor.com (11/30/22): Existing home sales fall 14.1% Y/Y in 2023

National Association of Home Builders (1/4/23): Existing home sales fall 15.7% Y/Y in 2023

"In the first half of this year, I feel sure that home prices will level down on average, and I think sales will kind
of cuddle below the line of 2018," O'Connor said (closed existing home sales). I anticipate that the rate of
closed transactions will be a little below the more typical Florida house sales pace, like what we seen in 2018.
Although not at the same level as last year or in 2021 with dollar volume, existing house sales will nevertheless
have a greater dollar volume because home values are significantly higher currently than they were in 2018.

Morning Consult's head economist, Dr. John Leer
According to Dr. John Leer, chief economist at Morning Consult, how consumers are impacted by the economy,
inflation, and other factors—or how they feel about what's happening in the world around them—impacts
consumer confidence and influences their purchasing or saving habits. The majority of the United States'
consumer confidence is beginning to increase in 2023, but it is still much below where it was a year ago,
according to him. For consumers to feel more secure and optimistic about the economy and their future, there
must be sustained real wage increases and somewhat predictable policy results. Consumers reported increasing
credit balances at the greatest rates since the tracking project's inception in December. According to research, a
growing number of consumers are struggling to make ends meet at the end of the month, and the proportion of
individuals who are able to save each month is declining.

According to Leer, this is an indication that consumers are reaching their breaking point and are being forced to
cut back on their spending as rising costs eat away at their savings and feeling of financial security.
Even while the report indicates that inflation is beginning to decline, he said, inflation is still having an effect on
consumers. "They continue to see and feel that inflation is raising their costs. Consumers are attempting to
reduce their expenditures as a result of their financial difficulties. The outlook for the American economy has
significantly worsened during the past two months, particularly on the consumer front. Consumers have run out
of money to spend. We anticipate that consumers will continue to hold back on their purchases as small
businesses and other sectors cut down on employment and spending.

Leer did add, though, that many customers continue to place a high value on housing and house ownership.
Housing prices are starting to level down but are still defying downward pressure, according to him. "Buyers
are still on the sidelines, eager to buy a house as soon as they have the money to do so. In particular, for young
individuals planning to have a family who feels secure in their professions and are prepared for that next move,
homeownership continues to be seen as a significant consumer objective.

A good agent, like myself, will be familiar with the market and locations you're living and working in. It's my
job to know this, thus I will be far more familiar with your search region remember that having me, Juan
Mestre, as your real estate agent in your corner may make many difficulties go away for your home sale and
purchase.

Sourced from the information available for FloridaRealtors.com, Realtor.com, BHHS.com, and my knowledge.