When I had Scott Gibson, managing Director of Compass Southern California, on the podcast last May he said, “We are in a recession and no one knows about it yet.” A few months later it was clear we were in a real estate recession as interest rates climbed to 7% at the fastest pace in history. The housing market slowed to a halt in the 4th quarter of 2022 and then something interesting happened in the new year. With interest rates dropping below 7% the housing market snapped back abruptly and the shortage of inventory, or at least, well priced blue chip options were few and far between. The multiple offers came back with vengeance and the buyers were bidding homes up back to peak prices. Over the past 30 days it seems like the market has settled down again. Great homes priced about 3-5% below the last comp are selling and selling rather quickly, everything else is sitting and not selling, except for exceptional properties in the best locations. Scott’s advice to realtors today is to, “stay alive until 25!”  For the next 18-24 months he anticipates a choppy market until interest rates settle and we get through the inflationary head winds. No one has a crystal ball and the market is changing everyday but Scott has as much insight, experience and knowledge as anyone in the residential industry. Sit back and enjoy the show. School is in session.

Scott Gibson was the President of Coldwell Banker in Southern California overseeing 63 offices and $20B in annual sales volume. He launched his own firm Gibson International which merged with Pacific Union in 2018 and was acquired by Compass. He is currently the managing Director of Compass in Southern California.

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