My name is Colleen Barry and I'm the CEO of Gibson Sotheby's International Realty.

I wanted to share with you a little about the market shift that we're going through. Many of you have heard on
the news that maybe we're headed toward a 2008 bubble, but I wanted to share with you why that's not going
to happen. Recently we have seen changes in the market trends, and that is largely led by the mortgage rate
changes. Last year in 2022, we saw some volatility in the mortgage interest rates. That meant that some
buyers had to step away from the market for a while, but we've definitely seen them come back, and buyers
are regaining their confidence in what's happening in the market.

However, what happened to our market overall,because it did affect just some buyers in just some markets,is
that our market has shifted into micro markets. The news media has been saying that this is going to be
another 2008 crash,but that's not the truth. And there are some important reasons why.

Why won't it be like 2008?

First, in 2008, we were dealing with what was the long result of irresponsible lending practices. After that, we
all learned to tighten up lending, and that happened through the federal government. Now, homeowners have
more equity in their homes than before. So, we don't have that kind of situation. Another reason that this is
different than 2008 is that our market, because it's a free market economy, is driven by two important
factors: supply and demand.

We still don't have the supply that we need. While we've been selling more homes than in the prior years, we
still need more. So, with supply and demand being the two main drivers, and demand still remaining quite
strong, we believe our market will continue to be strong. As a matter of fact, we are seeing that buyers
understand that. They still have all of the reasons that people need to move. They have new families that
they're starting, or perhaps they're splintering into two families, or maybe their job is requiring them to move:
all kinds of lifestyle changes that require them to find a new home. They've come back in droves, and we think
2023 is going to be a very strong market.

What can buyers and sellers do to find success?

In a situation where you're going through a market shift and the overall market trends are moving into micro
markets, it's more important than ever to work with an experienced real estate agent and to put together an
advisory team, including a mortgage person, an attorney, inspector, and other people who can help you as a buyer. On the reverse side, work with an agent who has experience in marketing your home so that you can
get the most for the home. An experienced agent will help you understand how your individual home is
affected by local trends within the micro markets and not by national trends.

If you're a buyer who stepped away from the market in 2022 due to the volatile interest rates, you actually
have a great opportunity right now. The market has slowed down just a little. As a matter of fact, we're calling
it normalizing. We are seeing that people are able to put in offers that have contingencies, which is something
that in the last few years was a rarity.

Now is the time to understand what your borrowing options are. Talk to your local lender. Find out if there are
state or federal programs that can help you with the affordability of your new home. Find out what the rates
are truly for you because what you're hearing may not actually be the reality.
We look forward to guiding you in 2023.

We are endlessly grateful to the more than 2,900 people who entrusted us with an important decision last
year. That decision is about how to sell their home or how to buy a new one. I'm also incredibly grateful to the
associates who helped us through this, those being our sales agents and our support staff who guided people
through that very important transition. Despite the shifting market, and actually because of it, our agents are
remaining on the forefront to guide their clients through such important decisions.

We look forward to helping you with wherever your move may take you in 2023.

The 2023 Housing Market: A Look Ahead with Colleen Barry