Is There a Housing Market Correction Coming?

By in News

• San Diego Housing Market Correction Could Mean Slowdown •

With inflation and mortgage rates on the rise, there is a lot of speculation about where the market is headed and what that means for home prices. In fact, it has many wondering if a market correction is coming in 2022.

As people spent more time than ever at home during the pandemic, real estate value defied all expectations and prices soared. Property values haven’t slowed and home prices are currently at record highs. A recent CoreLogic report showed that nationally, home prices increased 21 percent from March 2021 to March 2022, leading many to question how long this can go on — and when the market is due to correct itself.

For those of us who remember the 2008 bubble, this can be a daunting prospect. Fortunately, today’s market situation is different from the bubble of 2008. There are a number of bubble buffers, including:

  • A lack of supply
  • Tight lending standards
  • Super high buyer demand

These conditions make today’s market different from what we saw 15 years ago. Most industry experts agree that we shouldn’t expect to see a crash as we did in 2008. A housing slow-down seems almost unavoidable, but what that will look like will vary from market to market. In strong metropolitan areas experiencing population growth and an inventory shortage, such as California, any impact on market prices and conditions will be less severe.

The Bottom Line

Ready to make the most of this ever-changing market? Call us at 858.880.0195 or email portia.green@compass.com to get started.

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About The Author
Portia Green, REALTOR®

Portia's clients all have a similar story. She feels like a friend and most likely you met her at the kitchen table or huddled up in the living room. Her personable nature and easy going approach attract sellers and buyers alike, in what can be a stressful and emotionally charged experience. An experienced REALTOR® with 15 years experience, she is just as excited about real estate today as she was with her first transaction. Portia remains ever-committed to helping her clients find their place in the world and helping busy people navigate this crazy real estate market like a pro.