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

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About The Author
Portia Green, REALTOR®

Portia Green is a highly experienced full-time REALTOR® specializing in the representation of Sellers, heralded by her clients as data-driven and an effective negotiator. Producing $25M total in residential sales volume, Portia's goal is to help her clients achieve the best results when selling their homes and to make their experience an enjoyable one. She has successfully sold real estate since 2008 and has gained an in-depth knowledge of local real estate markets & seasonal trends. Portia has achieved a 100% customer satisfaction rating and wants to share her expertise & personal service with you in the sale of your home. When listing your home with Portia Green and Compass, you'll receive the hands-on service you need and desire. Portia will help you manage the entire process of selling your home from pricing, preparing and staging the house, to marketing, negotiating offers, inspections, all the way to closing. She will recommend skilled vendors for any job needed, personally host Open Houses, and ensure that all showings are accompanied. At Compass, Portia offers a wise no-nonsense way to sell your home for the best price and the least hassle. With a keen eye for staging & preparing listings to maximize Buyer appeal, all of Portia Green's listings are professionally photographed using HDR (High Dynamic Range) photography to provide the highest quality photos in the industry. Professionally printed marketing materials are prepared for all Open Houses. We also capture a 3D scan of your home that creates an interactive walkthrough online along with a custom-designed floor plan and targeted digital marketing campaigns on Google & the most popular social media channels. Compass participates in the Multiple Listing Service, which is the local real estate database of homes listed for sale that all REALTORS® use in helping their Buyers find houses. Your home will appear on every real estate website, in its best light, making a stunning camera-ready debut. Portia Green's home valuation expertise and extensive experience in comparative market analysis will help price your home accurately. She has refined her skills to help you pinpoint which features of your home will result in more showings and better results. Her mantra is for you to be ready to sell your home and feel good about that first. Portia knows that home inspectors always find a problem; that drones take some of the best photos in town; and that her eyebrows will grow to the floor in the time it takes her to read everything that's happening with your HOA, but that doesn't mean she won't do it anyway. Eyebrows be damned. You'll always need a place to unplug, connect, dream, grow, or just be yourself. That makes what Portia does even more meaningful. She’s ready to go the extra mile to help you find just the place. Whether you're selling your very first home, offloading an investment property, or want a vacation getaway with passive income, she is attentive to the details of every home sale. Portia helps busy people navigate this crazy real estate market like a pro, so don't be shy. Every great relationship starts with free advice and a friendly chat. Ask as many questions as you need to. Selling houses is her jam!