Is The Market In A Full-Blown Correction? Check Out What Economist Mark Zandi Has To Say

The recent housing boom left buyers grappling with the decision of whether or not they should move forward with a home search in the face of rising mortgage rates and home prices. While things have been slowly shifting back to normal, there are signs that the boom is moving into a full-blow correction. Taking a look at what economist, Mark Zandi, has to say can help you understand what to expect as you search for a house in a newly transformed market.

What Does a Housing Correction Mean?

A housing correction is a little different compared to what you see in a stock market correction. When economists use the term housing correction, they are typically describing the end of a boom where home prices begin to fall. Keep in mind that this is usually a gradual process, but it can happen rather quickly. Zandi currently describes house prices falling over the majority of the regions in the United States over the next two years. During a correction, buyers can enjoy more confidence in finding an affordable house. On the seller’s side, a correction means being able to know that their home’s value shouldn’t dip below normal like what occurred during the 2008 financial crisis.

Why Are We Moving Into a Correction?

Mark Zandi’s analysis breaks down the current numbers and anticipated home prices through 2024 to show that there is a housing correction actively occurring. While most buyers should notice home prices coming down in their preferred neighborhoods, you might still see a few higher asking prices for homes in areas with a high level of demand. If that’s your case, then you can rest assured that you will see these prices come down. Zandi further predicts that homes in areas that were overvalued will have their prices decline by as much as 10% over the upcoming year.

What Does This Mean for Buyers?

There are several important ways a housing correction impacts your search. One of the biggest ways is that you can expect to pay less for your home if you begin the process now. Currently, certain areas of the country are already seeing 0% increases in home prices, and homes for sale in Dallas are among them. Being able to pay less for a house helps you to select one that checks off all of your boxes, and you can expect to experience fewer bidding wars that can inflate a house price out of your budget. Opening up more houses in your search can make a significant difference in being able to find your dream home faster.

After watching what happened over the past couple of years, it is normal to be hesitant about jumping into the home-buying process. Yet, if there is one thing to learn about the recent pandemic housing boom, it is that it is essential to move when the market is right. With lower home prices and less competition, you can expect to get your preferred house at an affordable price that helps you to make owning a new home financially possible.