Is the Real Estate Market Adjusting — or Opening Up Opportunity?
Date Posted: Jun 3, 2025
We’re talking to real estate investors all over the country and hearing the same question:
“The market’s adjusting — doesn’t that mean I should wait?”
It’s a fair question. After years of rapid appreciation, bidding wars and historically low rates, today’s market feels… different. Prices in some areas are flat. Interest rates are higher. Some investors are hitting pause.
But at LendingOne, we believe this kind of market shift doesn’t mean danger — it means balance and in many cases opportunity for investors who know what to look for.
In this article we’ll break down what a “market adjustment” really means, what the data says in mid-2025 and how smart investors are using this period to buy with more control and less competition.
What Does a “Market Adjustment” Really Mean?
First, let’s define terms. A market correction usually means a big decline — 10% or more in asset values. A crash is worse, like 2008. But a market adjustment is neither. It’s a natural, even healthy, rebalancing after years of rapid growth.
Between 2020 and 2022 US home values rose over 40% in some areas due to historically low rates, remote work and limited inventory. That wasn’t sustainable — and today’s slower pace is more in line with long term trends.
Why Adjustments Create Openings for Investors
When the market cools, here’s what happens:
Competition Declines
Fewer casual buyers and over-leveraged investors are bidding on deals. That means:
- More time to analyze properties
- More room to negotiate price and terms
- Better chance of winning without overpaying.
Sellers Get More Motivated
Sitting on the market longer means sellers start to make concessions:
- Price drops
- Repairs
- Rate buydowns
- Closing cost credits
These incentives can change your return profile — and they’re more common during market slowdowns.
You Can Focus on Fundamentals
In hot markets speed often wins. But in balanced or cooling markets quality wins.
You can:
- Run thorough comps
- Forecast cash flow with more certainty
- Take your time inspecting the property
- Avoid buying on emotion
That’s how disciplined investors build wealth — not by chasing hype, but by buying good properties at fair prices.
Common Investor Misconception: “A Slower Market Means More Risk”
Actually it’s the opposite. Markets that grow too fast often have hidden risks:
- Inflated values
- Short term speculation
- “FOMO” purchases with thin margins
A slower market means better underwriting, more rational pricing and longer hold times — all good for disciplined investors.
What Should Investors Be Doing Right Now?
Here’s what LendingOne recommends:
Stick to Your Buy Box – Know your numbers. Focus on properties that cash flow at today’s rates — not hypothetical ones.
Reconnect with Off-Market Channels – Agents, wholesalers, property managers — the best deals may not be on Zillow.
Get Your Financing Lined Up – The investors moving fastest are the ones with capital lined up and lending terms locked in.
Don’t Confuse Caution with Paralysis – Being thoughtful is wise. But letting fear freeze you out of a good deal? That’s costly over time.
Final Thought: Adjustments Are When Portfolios Are Built
When everyone’s rushing in it’s hard to win. When people start pulling back — that’s when long term investors get serious.
This isn’t 2008. It’s not even 2020. It’s 2025 — and the market is just finding its footing after several crazy years.
If you’ve been waiting for the market to “normalize” good news: It already has.
What you do next depends on whether you see that as a threat — or a window.
Want to Talk About a Deal in Today’s Market?
We can help.
→ Talk to a LendingOne Advisor today about market trends, current loan options and how to take advantage of today’s market with the right financing strategy.
Let’s make the adjustment work for you.