How can I prepare for a potential real estate market correction?

Preparing for a potential real estate market correction requires a cautious and strategic approach. Start by building a solid emergency fund in case of an economic downturn, ensuring you can cover mortgage payments if needed. It’s also wise to diversify your investments, rather than relying solely on real estate. For current property owners, it may be beneficial to assess the liquidity of your assets and consider selling or refinancing if it makes financial sense. Buyers should be careful about overextending their budgets and should focus on long-term value rather than short-term trends. In addition, keeping an eye on interest rates, inventory levels, and local market trends can help you gauge when the right time to buy or sell is.