Is the Housing Market Correcting?

Question

If you’re following the news, all of the headlines about conditions in the current housing market may leave you with more questions than answers. Is the boom over? Is the market crashing or correcting? Let me know your thoughts. I assist Real Estate Investors with finding Deals.

Nick Shri · Answer

Properties may loose value if they are in D class neighborhoods, or the neighborhood/town is dependent on Amazon fulfillment center. C class properties most likely will hold value, B class properties will increase a little and A class may hold or up a bit.

Marty Boardman · Answer

I'm in the flat or rising slightly category. Inventory levels are still WAY too low for there to be any type of crash or correction. People bought houses in the 80's when interest rates were 17% so they'll buy when they're at 6-7%.

And right now there's just over 1 million homes available to buy nationwide (normal would be around 2 million). During the 2008 crash there were 4 million.

Greg M. · Answer

I can only go by what I see in my area. Inventory is extremely low at all price points. Fairly priced starters (<$500K) are gone off the market super fast - days, not weeks/months. Most mid-levels ($750K-$1.25M) are gone fairly quick. Seeing quite a few price reductions on the higher end ($2M+) and they are sitting on the market longer, but these are homes that have gone up $1M+ since COVID and the sellers are asking strong money for them. It seems like a lot of buyers are now playing cautious and hoping for a correction so they can get in at a lower price level. A lot of people got priced out of the market over the last few years by doing this. Gut feeling is that the number waiting on the sidelines is much larger this time, so that may cause a short-term slight drop in price as there is less competition, but once these people re-enter the market, prices are going to go back up as there just isn't enough inventory. The good about this many people waiting on the sidelines is that the masses are usually wrong.

The major unknown is the economy and the mid-term elections. The economy could worsen faster than anticipated. The expected mid-term bloodbath failing to materializing and therefore the current government policies continuing to harm the economy could push prices lower.

Alex Case · Answer

How is looking in West Virginia? I am looking at a rental to buy

John Acheson · Answer

PS wait til MSM announces RECESSION in a week LOL

Panic Selling

Foreclosures

Price Cuts

Layoffs

BKs

follow me on LI if you want data!

John Acheson · Answer

OF COURSE AND I can prove it on a daily basis,

Zillow is still hiding the TRUTH,

BUT RedFin is telling the TRUTH!

Click on your target city/area,

then click Remove Boundary

then click on All filters

then click the box

Price reduction.

Then compare TODAY

vs one week vs month.

You will BE SHOCKED by

the downward pricing!

Robb Almy · Answer

Like politics, all housing is local in my opinion. However, overall I think we are definitely cooling because of the higher rates. As mentioned by others, inventory is still low in most places so that is helping to protect values in the short term. We may see some decrease in values over time but a lot of real estate has been overvalued as of late. The good news is that depending on your financing and your cash flow, if your property goes down in value it is a loss on paper that you can ride out and then hopefully ride back up. Patience will be key.

Bill B. · Answer

Building starts dropped 14% according to recent reports. That’s not leading to lower prices. The lowest average yoy appreciation in the country was Iowa at $17k, nationally the average was $64k. Hawaii and California were over $120k, AZ and NV filling out the top 5.

John Underwood · Answer

Definitely slowing, but more demand that availability still.

Is the Housing Market Correcting?

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