In the year 2023, we will see a significant economic downturn that will affect home values and completely obliterates the used car market. Layoffs are looming, and inflation still has not stabilized.
Auto loan defaults are increasing rapidly, while auto values have been falling for the past few months. It's gotten to a point where some companies are not even bothering to repo a vehicle because of how little some of these cars are worth. With the auto-loan defaults comes the rise of interest rates by the Federal Reserve which is going to dramatically hit the housing market soon. The bubble hasn't popped just yet, but the peak of home values has been reached in May 2022, at least here in Florida. Construction companies will likely feel less reluctant to expand operations, and home developers are in a tough spot if they continue building homes.
The media and tech industry was just struck with a massive wave of layoffs, which will likely trickle down into more important industries such as the trucking industry. This will be a credit crunch like nothing we have ever seen; the Auto-loan collapse is currently upon us, the housing market crash is beginning to ignite, and inflation still isn't slowing down on necessities as this all is happening just in time for Christmas.
Expect a major downturn in Q1 2023, and prepare yourselves because there is no telling how long this will last. The Great Recession is almost upon us.