{"id":146389,"date":"2023-01-17T09:58:17","date_gmt":"2023-01-17T16:58:17","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=146389"},"modified":"2024-01-19T10:42:36","modified_gmt":"2024-01-19T17:42:36","slug":"how-the-housing-correction-will-affect-everyone","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/how-the-housing-correction-will-affect-everyone","title":{"rendered":"Here&#8217;s How You Will Be Affected By The Housing Correction"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC4041196270\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">The rapid price boom many housing markets experienced during the pandemic is&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.housingwire.com\/articles\/home-price-appreciation-continued-to-slow-in-september\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">slowing down<\/span><\/a><span data-preserver-spaces=\"true\">, and many economists expect a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.yahoo.com\/video\/u-housing-market-see-second-004546912.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">housing market correction<\/span><\/a><span data-preserver-spaces=\"true\">. The good news is that the housing market isn\u2019t expected to crash. The bad news is that the housing market is entering a new era that isn\u2019t likely to benefit anyone specific.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Homes listed in 2023 may&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/finance.yahoo.com\/news\/homes-staying-market-longer-meaning-090127302.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">stay on the market longer<\/span><\/a><span data-preserver-spaces=\"true\">, and sellers may not realize the same profits they could have six months ago. Meanwhile, even if buyers can snag a lower price on a home in some markets, high interest rates are hurting affordability. Agents are&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-11-28\/us-housing-enters-deep-freeze-with-sellers-and-buyers-sidelined\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">already hurting<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;from the slowdown in selling activity, and investors will need to adapt to new conditions that are making some investment strategies impractical. No one wins. However, everyone can be mindful of housing forecasts and adjust their plans to capture the best possible outcomes in a difficult situation.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Impact on Sellers<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Market Is Already Shifting<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Sellers may be aware that listing now will mean a longer process and higher mortgage payments on a new home, but people still need to move. Inventory&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.redfin.com\/us-housing-market\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">has begun increasing<\/span><\/a><span data-preserver-spaces=\"true\">, leading to less competition, although inventory is still tight relative to pre-pandemic levels. The sale-to-list price ratio is dropping as well\u2014gone are the days of multiple offers above-asking. And the median number of days a home stays on the market has been&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/MEDDAYONMARUS\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">increasing since June<\/span><\/a><span data-preserver-spaces=\"true\">. While trends in individual markets vary, many are shifting into the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/seller-concessions-grew-in-q4\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">hands of the buyer<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Sellers Are Still Poised to Earn Profits<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Existing home prices skyrocketed during the pandemic. Between December 2019 and June 2022, home prices&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nytimes.com\/2022\/09\/28\/opinion\/housing-prices-pandemic.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">rose 45%<\/span><\/a><span data-preserver-spaces=\"true\">, the biggest jump since the U.S. national home price index was developed. The markets that saw the most rapid increases are&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/these-housing-markets-are-cooling-the-fastest\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">slowing down the fastest<\/span><\/a><span data-preserver-spaces=\"true\">, but even the most dire housing forecasts predict a drop of&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fortune.com\/2022\/10\/05\/housing-markets-at-risk-of-25-to-30-percent-home-price-crash-moodys\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">up to 30%<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in the most overvalued markets\u2014not enough to wipe away the equity gains most homeowners experienced, though some individuals could lose money to bad timing.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Some families could stand to earn up to $1 million in untaxed capital gains if the More Homes on the Market Act, which the National Association of Realtors endorses, passes. The legislation would double the threshold for the capital gains exclusion, which is now $250,000 for single filers and $500,000 for married couples. The law may encourage previously hesitant homeowners to downsize, the NAR says.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But it\u2019s a difficult time for growing families to move to a larger home. Sellers who bought their homes during the homebuying boom, when interest rates were low, may face unaffordable mortgage payments if they try to trade up. The monthly payment on a 30-year fixed mortgage for a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/MSPUS\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">median-priced home<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;has more than doubled since the second quarter of 2020, based on new mortgage rates and elevated prices.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Timing Is Everything<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">A variety of firms, including Morgan Stanley, Moody\u2019s Analytics, and Capital Economics, have&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/another-firm-changes-its-forecast\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">revised their 2023 housing forecasts<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;to predict even steeper drops than they originally estimated. The most optimistic experts only expect a modest increase in prices\u2014for example, NAR Chief Economist Lawrence Yun says prices could&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/nar-economist-housing-prices-rise\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">rise 1%<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;across all markets next year. The timing of falling prices and housing market recovery is still unpredictable. Yet, it could make the difference between meager profits and huge capital gains for sellers.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Selling now means facing less affordable payments on a new home. But waiting until late 2023 could leave sellers in a worse situation\u2014mortgage rates might stay elevated, while housing prices could drop. Holding out until late 2025 or 2026 is likely the best option, especially for sellers with fixed-rate mortgages, since most experts expect the market to rebound by then. But not everyone will have the option of waiting.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Impact on Buyers<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Affordability Pressure in Today\u2019s Market<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Prospective homebuyers face several challenges in today\u2019s market. Thanks to inflation, incomes are stretched thin. Prices at the grocery store and rents that are expected to continue to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cnbc.com\/2022\/09\/28\/how-much-higher-rent-will-go-in-2023-according-to-experts.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">climb through 2023<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;are making it difficult for people to save. The median-priced home, which is now $454,900, has become out of reach for&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/MEHOINUSA672N\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">median-income households<\/span><\/a><span data-preserver-spaces=\"true\">. Mortgage rates have come down slightly but are unlikely to drop further and may even go up since the Fed\u2019s fight to tame inflation is ongoing. At current rates, the mortgage payments on a median-priced home would eat up 38% of a median-income household\u2019s monthly earnings.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">A Housing Correction Could Provide Limited Relief<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">If prices fall as many economists expect, buyers may be able to capture better deals in 2023 or 2024 and realize appreciation gains in 2025 or 2026. But predictions aren\u2019t exact, and experts disagree on when prices will hit bottom. And it\u2019s difficult to determine when mortgage rates will come down. Inflation has been stubborn to the Fed\u2019s efforts.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Even with moderate price relief, affordability will remain a problem for prospective homebuyers. In order for mortgage payments to return to 18% of household income, which has been typical for homebuyers historically, prices would have to drop 39%,&nbsp;<\/span><em><span data-preserver-spaces=\"true\">The Washington Post<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.washingtonpost.com\/business\/waiting-for-home-prices-to-drop-bad-strategy\/2022\/12\/13\/dd59132e-7ae6-11ed-bb97-f47d47466b9a_story.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">reports<\/span><\/a><span data-preserver-spaces=\"true\">. That\u2019s a larger price correction than anyone is expecting.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Financing Strategies Are Evolving<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">In 2021, applying for a traditional 30-year fixed-rate mortgage was a no-brainer. Buyers could benefit from historically low rates. Now, a traditional mortgage means getting locked into a higher interest rate. Now that buyers are counting on refinancing once interest rates come down, they\u2019re pursuing financing strategies they may have been deemed too risky in the past.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For example, adjustable-rate mortgages are&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.corelogic.com\/intelligence\/interest-rates-are-up-but-arm-backed-home-purchases-are-way-up\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">becoming more popular<\/span><\/a><span data-preserver-spaces=\"true\">, even though they come with unpredictable monthly payments once the fixed-rate period ends. That uncertainty may have deterred mortgage applicants in the past, but ARMs made up&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/apnews.com\/article\/business-mortgages-mortgage-rates-off-the-charts-6b8c8c8e1912cadf69dd41dce70d99b8\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">12.8% of home loan applications<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;as of the second week in October, up from only 3.1% at the start of the year. ARM rates haven\u2019t risen quite as much as fixed mortgage rates, allowing homebuyers to access lower monthly mortgage payments, at least during the fixed-interest phase of the loan.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There may also be opportunities for buyers to use other creative financing options that might not have made sense or been available in a different market. For example, sellers may be willing to offer owner financing, which may be more accessible to low-income buyers with a low down payment or those with poor credit. With owner or seller financing, the seller becomes the lender, holding onto the deed until the buyer has paid for the home with interest.&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/2013-11-05-seller-financing\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Seller financing<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;can be risky because it\u2019s not subject to the same consumer protections as a traditional mortgage, but it can often result in more flexible terms and cost savings over time.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Impact on Agents<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Not Enough Business<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">In 2021, over&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/hbr.org\/2022\/03\/the-great-resignation-didnt-start-with-the-pandemic\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">47 million Americans<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;left their jobs voluntarily. Many felt trapped in&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.pewresearch.org\/fact-tank\/2022\/03\/09\/majority-of-workers-who-quit-a-job-in-2021-cite-low-pay-no-opportunities-for-advancement-feeling-disrespected\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">low-paying jobs without opportunities for advancement<\/span><\/a><span data-preserver-spaces=\"true\">. It\u2019s now being called The Great Resignation, and while stimulus checks during the pandemic may have been a motivating factor for people to find new careers, some experts say the trend has been ongoing for a decade. People are seeking better ways to live and make money in jobs that provide better pay and more flexibility. That trend collided with high demand in the housing industry, causing more people to become real estate agents.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The number of U.S. real estate agents&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.marketplace.org\/2022\/06\/21\/as-the-real-estate-market-cools-so-does-the-market-for-agents\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">peaked in 2021<\/span><\/a><span data-preserver-spaces=\"true\">, and now there isn\u2019t enough business to go around. Selling activity is down&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.redfin.com\/us-housing-market\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">almost 30%<\/span><\/a><span data-preserver-spaces=\"true\">. Agents have gone from fielding too many phone calls from prospective clients to knocking on the doors of homeowners facing foreclosure, hoping to acquire new listings and earn commissions.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Differentiating and Expanding to Survive<\/span><\/h3>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.nbcnews.com\/politics\/pandemics-real-estate-jobs-boom-turning-bust-layoffs-hit-rcna48811\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Widespread layoffs<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in the housing industry and decreased selling activity have led many real estate agents to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-11-28\/us-housing-enters-deep-freeze-with-sellers-and-buyers-sidelined\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">pursue side hustles<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;until selling activity rebounds. Those who hope to stay in the game will need to adapt. More competition among agents requires more aggressive marketing strategies, including social media marketing. Real estate agents may also need to expand the area or price point they work in or even move to a new market altogether where there\u2019s more demand. Real estate consulting work may be an option for some, while others with less experience may drop out of the industry entirely.&nbsp;<\/span>Agents can also take advantage of our <a href=\"https:\/\/www.biggerpockets.com\/featured-agent\" target=\"_blank\" rel=\"noreferrer noopener\">Featured Agent program<\/a> for consistent investor leads!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Impact on Investors<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Cash Is King<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">High mortgage rates are squeezing the margins of investment deals for investors who rely on financing. If interest rates were still at 3.25%, investors would be able to get nearly 40% more cash flow on a median-priced rental property that achieves the 1% rule\u2014one that can capture 1% of the purchase price in monthly rent. High mortgage rates leave less room for vacancy problems, maintenance issues, and other things that can go wrong with an investment property. Unless investors have the reserves to buy properties in cash, they\u2019ll be looking at a narrower segment of properties that can achieve the return they\u2019re looking for.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Right Timing Can Maximize Your Returns<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">As with any investment, it\u2019s best to buy property when prices are at their lowest and sell when prices are high. Home values in 2023 aren\u2019t predictable but are likely to fall, reaching a bottom in 2024 or 2025. Sometimes, investors can use the expectation of lower prices to their advantage. With buyer competition waning, homes are sitting on the market longer. It\u2019s no longer unreasonable to offer a price below asking, especially in&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fortune.com\/2022\/09\/04\/housing-market-map-home-price-cuts-redfin\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">markets where price cuts are common<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, the uncertainty of future home values also makes certain investment strategies risky. A successful fix-and-flip deal requires a quick renovation. But the real estate market is already losing steam. Investors who acquire a fixer property now could bFe looking at lower home values when they try to resell in a few months.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Choosing the Right Strategy Is More Important than Ever<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Real estate is still a great investment, but certain strategies are becoming less viable. It\u2019s becoming&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/news.move.com\/2022-07-21-Realtor-com-R-June-Rental-Report-Renting-is-More-Affordable-than-Buying-a-Starter-Home-in-Three-Quarters-of-the-Largest-Metros\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cheaper to rent than buy in most markets<\/span><\/a><span data-preserver-spaces=\"true\">, which makes it difficult for investors to get positive cash flow from a long-term rental. Just as agents need to adapt by looking at other markets, investors may need to pursue long-distance investing if they\u2019re hoping for the stability of a long-term rental.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Meanwhile, the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/airbnbust-why-it-may-be-time-to-rethink-short-term-rentals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">short-term rental market<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;is becoming saturated. In 2021, the demand for Airbnb rentals was high, encouraging investors to enter the market as hosts. The number of available rentals on the platform&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/time.com\/6223185\/airbnbs-empty-short-term-rentals\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">surged 23.2%<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;over the course of the year ending in September 2022. Now, there\u2019s a massive oversupply of Airbnb properties relative to consumer demand, causing occupancy rates to fall.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.forbes.com\/sites\/carolinecastrillon\/2022\/07\/17\/why-the-digital-nomad-lifestyle-is-on-the-rise\/?sh=26ecf2ab4934\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">rising number of digital nomads<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;may create demand for&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/common-questions-about-medium-term-rentals-answered\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">medium-term rentals<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in some markets. With a medium-term rental, the investor furnishes the property, pays the utilities, and rents out the unit for one to six months at a time. The medium-term rental is the Goldilocks of real estate investment strategies\u2014it offers greater stability than a short-term rental and higher cash flow potential than a long-term rental. However, it only works in the right market. A hot urban area that is also home to employers that use traveling professionals will likely provide the most opportunities for investors.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Everyone Must Adapt<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">To get the best outcomes from your real estate transaction, you\u2019ll need to pay attention to the changing market and adapt accordingly. That\u2019s true for buyers, sellers, agents, and investors. With the right strategy and some patience, anyone can weather the predicted housing correction\u2014there may even be opportunities to profit from it.&nbsp;<\/span><\/p>\n\n\n\n<div class=\"wp-block-group border border-gray-200 p-6 rounded-md has-slate-50-background-color has-background\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n    \n  <div \n    id=\"segemnt-view-event-block_624f52525847f\" \n    class=\"  \"\n    x-intersect:enter.once=\"\n      analytics.track('On The Market Blog Sponsor View', {\n        referrer: 'https:\/\/www.biggerpockets.com\/blog\/how-the-housing-correction-will-affect-everyone',\n              })\n    \">\n    \n  <\/div>\n  \n\n\n<h3 class=\"has-text-align-left mt-0 wp-block-heading\"><strong>On The Market is presented by Fundrise<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-1024x252.png\" alt=\"\" class=\"wp-image-142373\" width=\"256\" height=\"63\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-1024x252.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-300x74.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-768x189.png 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black.png 1380w\" sizes=\"auto, (max-width: 256px) 100vw, 256px\" \/><\/figure>\n\n\n\n<p class=\"mb-0\" style=\"font-size:16px\"><strong>Fundrise is revolutionizing how you invest in real estate.<\/strong><\/p>\n\n\n\n<p class=\"mt-0 has-slate-600-color has-text-color\" style=\"font-size:16px\">With direct-access to high-quality real estate investments, Fundrise allows you to build, manage, and grow a portfolio at the touch of a button. Combining innovation with expertise, Fundrise maximizes your long-term return potential and has quickly become America\u2019s largest direct-to-investor real estate investing platform.<\/p>\n\n\n\n<div id=button-custom-event-block_624f4a1837234 class='button-custom-event'>\n      <a href=\"https:\/\/t.sidekickopen84.com\/s3t\/c\/5\/f18dQhb0S7kF8cpngfW16gy-_59hl3kW7_k2841CX6NGN35Qwt3rN_mgW56Jw3w1HcgXpf197v5Y04?te=W3R5hFj26QkH2W4hJTY63T3pkxW3Fbt5S3Cdl5cf49M_4s04&#038;si=8000000019411002&#038;pi=6988e0ed-1aea-4af5-9769-8a0de4675eeb\" x-on:click=\"window.analytics.track(&#039;On The Market Blog Sponsor Click&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/how-the-housing-correction-will-affect-everyone&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\" rel=\"noopener\">Learn more about Fundrise<\/a>\n  <\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The rapid price boom many housing markets experienced during the pandemic is&nbsp;slowing down, and many economists expect a&nbsp;housing market correction. The good news is that the housing market isn\u2019t expected [&hellip;]<\/p>\n","protected":false},"author":613615,"featured_media":146392,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7383,7119],"tags":[],"class_list":["post-146389","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economics","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/146389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613615"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=146389"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/146389\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/146392"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=146389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=146389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=146389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}