Is the Housing Market in Correction? A Real Estate Pro’s View, Separating Fact from Fiction

Joseph Jennings | Broker, ABR, PPM, CAM
Tag: Housing Market Correction
is-the-housing-market-in-correction-real-estate-pros-separating-fact-from-fiction

Published: Feb. 23, 2023 – Source: Keeping Current Matters

Is the Housing Market in Correction? A Real Estate Pro’s View, (Separating Fact from Fiction)

Everyone has heard the talking heads speak about the residential housing market. The real estate market is shifting, and when that happens, it can be hard to separate fact from fiction. That’s where I come in. With decades of experience, I will help clear the rumors the headlines are giving so you can really understand today’s market and what it means for you.
Here are three common housing market myths you might be hearing, along with the expert analysis that provides better context.

Myth 1: Home Prices Are Going to Fall

One piece of fiction many buyers may have seen or heard is that home prices are going to crash. That’s because headlines often use similar, but different, terms to describe what’s happening with prices. A few you might be seeing right now include:

  • Appreciation, or an increase in home prices.
  • Depreciation, or a decrease in home prices.
  • And deceleration, which is an increase in home prices, but at a slower pace.

The fact is, experts aren’t calling for a decrease in prices. Instead, they forecast appreciation will continue, just at a decelerated pace. That means home prices will continue rising and won’t fall. Selma Hepp, Deputy Chief Economist at CoreLogic, explains:

“. . . higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”

Myth 2: The Housing Market Is in a Correction

Another common myth is that the housing market is in a correction. Again, that’s not the case. Here’s why. According to Forbes:

“A correction is a sustained decline in the value of a market index or the price of an individual asset. A correction is generally agreed to be a 10% to 20% drop in value from a recent peak.

As mentioned above, home prices are still appreciating, and experts project that will continue, just at a slower pace. That means the housing market isn’t in a correction because prices aren’t falling. It’s just moderating compared to the last two years, which were record-breaking in nearly every way.

Myth 3: The Housing Market Is Going To Crash

Some headlines are generating worry that the housing market is a bubble ready to burst. But experts say today is nothing like 2008. One of the reasons why is because lending standards are very different today. Logan Mohtashami, Lead Analyst for HousingWire, explains:

“As recession talk becomes more prevalent, some people are concerned that mortgage credit lending will get much tighter. This typically happens in a recession, however, the notion that credit lending in America will collapse as it did from 2005 to 2008 couldn’t be more incorrect, as we haven’t had a credit boom in the period between 2008-2022.

During the last housing bubble, it was much easier to get a mortgage than it is today. Since then, lending standards have tightened significantly, and purchasers who acquired a mortgage over the last decade are much more qualified than they were in the years leading up to the crash.

Bottom Line

No matter what you’re hearing about the housing market, trust the experts and partner with Sunny & Associates Realty. When with us, you’ll have a knowledgeable authority on your side that knows the ins and outs of the market, including current trends, historical context, and so much more. It’s having a Real Estate Guru (Concierge) at your service. Contact a Real Estate Concierge by clicking on the link below.

Joe Jennings Broker for Sunny & Associates Realty

Tallahassee Florida Crafting Your Ideal Retirement by Joe Jennings

Greetings, neighbors, soon-to-be active retirees and people who want to know more about the small town “Southern Charm” of Tallahassee, FL.

Home Buyers will have Greater Negotiating Power in 2023

This less competition comes more opportunity. Here are two trends that may be news to Home Buyers Negotiating Power in 2023…

Tallahassee Property Management: Maximize Rental Income & Reduce Landlord Stress

For landlords and residential real estate investors, professional Tallahassee property management services can help you maximize rental income, minimize stress, and boost your overall returns.

Waiting To Buy A Home Until Prices Come Down? The Experts Say That You Probably Shouldn’t

One of the biggest factors on people’s minds is home prices, which have come down slightly since peaking in June of last year.

Metro Tallahassee Real Estate: Your Ultimate Guide to Fixer-Uppers, Rentvesting, & Expert Property Management

With strategic investments in renovation properties and innovative approaches like rentvesting, buyers and investors can capitalize on opportunities in thriving neighborhoods in Tallahassee.

Unlocking Legal Tenant Screening in Florida

In this article, Joe Jennings from Sunny & Associates Property Management shares invaluable tips on tenant selection, steering clear of legal pitfalls.

Empowering Sellers: Offering Choices On How You Pay Commissions And List Your Home For Sale

Considering selling your home? We recognize the significance of providing sellers with proven options while listing your home for sale.

A Guide For Learning How to Buy a Home in South Florida with Sunny & Associates Realty

Buying a home is a significant milestone in life, and navigating the real estate market can be an overwhelming task, especially in a vibrant region like South Florida.

Struggling To Sell Your House in the Metro Tallahassee Area? Read This

Are you frustrated with the lack of progress in selling your home in the Metro Tallahassee area? Selling a property in this dynamic real estate market…

Real Estate Investing Terms & Acronyms You Need to Know

Every industry has its share of jargon and acronyms, and real estate is certainly no exception Like many first-time real estate investors…

sunny-associates-best-rated-realtor-broker-plantation-fl-joe-jennings-1-b

Top Rated Real Estate Broker

Real Estate Markets:
Tallahassee, Treasure Coast, Jensen Beach, Stuart, Port St. Lucie and Vero Beach Florida.