Defining Correction vs. Crash

The headlines say “slowdown,” but let’s call it what it is: a housing correction. Prices (in real terms) are slipping, days-on-market is stretching, and cooling is broadening across regions and price tiers. What does that actually mean for buyers, sellers, and investors and how is a correction different from a crash? We unpack the data, define the terms, and show you how to play offense without taking on unnecessary risk.

We break down nominal vs. real prices (and why inflation math matters), why widespread cooling doesn’t equal panic, and the key forces restoring affordability: rates, wages, and prices. Plus, how long a typical correction lasts, why “forced selling” is the real crash trigger (and why we’re not there), and what to do if your on-paper values dip.

Finally, we get tactical: tightening your buy box, underwriting with flat rents and conservative appreciation, negotiating in a slower market, and deciding when to hold vs. sell, so you’re positioned for the next expansion, not paralyzed by the current stall.

In This Episode We Cover

Correction vs. crash: clear definitions, real-world thresholds, and why speed + depth matter

Nominal vs. real prices: how inflation turns “up 2%” into a true decline

The cooling map: regions and price tiers that are slipping and which are merely slowing

Why inventory is rising (but not flooding) and why low delinquencies keep this a correction

How long corrections typically last and what could shorten or extend this one

Playbook for 2025–26: precise buy boxes, conservative underwriting, better negotiations, and handling “paper losses” without panicking

Links from the Show

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