Can Hope Peddlers stop dreaming of a housing market crash?

[Ify (Bobby) Anizoba]

High interest rates are causing price corrections in specific markets across the USA that saw massive growth and transaction volume in 2020/2021 due to low interest rates. Many non-professionals, including self-proclaimed economists and real estate experts, are predicting a real estate crash. However, the current market correction is a result of the Fed Reserve's policy aimed at slowing down the market to prevent such a crash.

This correction is not indicative of an impending crash but rather a necessary adjustment to stabilize the market. The housing market experienced an unprecedented boom during the low interest rate period, leading to inflated prices and unsustainable growth. The Fed's intervention, through increased interest rates, is intended to curb this excessive growth and bring the market back to more realistic levels.

It's important to understand that a correction is a natural part of economic cycles and does not necessarily signal a crisis. The current measures are designed to ensure long-term stability and prevent the kind of market collapse seen in the past. Instead of fearing a crash, we should recognize this period as an opportunity for the market to regain balance and for potential buyers to find more reasonable pricing.