On The Market This Housing Correction Could Last Years
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Oct 16, 2025 A housing correction is underway, with prices slipping and market cooling affecting various regions. The discussion clarifies the difference between a correction and a crash, highlighting that forced selling is a key trigger for panic. Inflation-adjusted prices reveal the reality behind nominal gains. Rising listings and a more patient market are key trends. The hosts provide tactical advice for buyers and investors on navigating these changes, including how to handle potential losses and when to consider selling or holding assets.
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Crash Vs. Correction: The Key Difference
- A crash is rapid, widespread double-digit nominal declines while a correction is slower, modest normalization of prices.
- Speed and depth distinguish a crash from a correction and determine how risky the cycle is for investors.
Nominal Up But Real Prices Down
- Nominal prices are up slightly but real (inflation-adjusted) prices are down, which signals a correction in real terms.
- Inflation erodes nominal gains, so investors must track real returns, not just headline prices.
Cooling Is Broad-Based Nationwide
- Appreciation rates are decelerating across nearly every market even where nominal numbers remain positive.
- Widespread cooling across regions and tiers reinforces that the market is in a broad correction.