Home prices in bubbly markets could fall 20% in 2023, according to a market veteran. Steve Proehl/Getty Images
- A recession in the US is inevitable and will be longer than expected, according to Kenny Polcari.
- The 40-year market veteran also thinks that the real estate market will continue to cool.
- Here are three cities where properties are overvalued and could drop by 20%.
The US unemployment rate just fell to its lowest level in over five decades, but 40-year market veteran Kenny Polcari still believes the economy is destined for a downturn.
“I don’t think it’s possible at this point to avoid a recession,” said Polcari, the founder and CEO of Kace Capital Advisors, in a recent interview with Insider.
His confidence is based on a historically reliable recession indicator: the inverted yield curve. For nearly a year, yields on shorter-dated US Treasuries have been higher than those of longer-dated US Treasuries, which means that markets have near-term worries about the economy. The yield curve has inverted before eight of the last 10 recessions, according to Bank of America.
Read more here: https://www.businessinsider.com/housing-market-crash-home-price-outlook-recession-new-york-chicago-2023-2?_gl=1*juo6bo*_
