How far will home prices fall?

Some say 20% or more is possible

 

 

How far will home prices fall? Some say 20% or more is possible As the U.S. housing market continues to cool, a growing number of forecasters say homeowners could soon experience significant price declines. These analysts look at the record run-up in home prices during the COVID pandemic and say a drop of 20 percent or more looms in the near future. For affordability to come back to 2020 [levels] at current interest rates, housing prices have to decline more than 40 percent," says Vitaliy Katsenelson, CEO and chief investment officer  The housing market boom slows. That mismatch between supply and demand led to skyrocketing prices. Mortgage rates shot past 7 percent, and home values began to retreat in some markets.  Meanwhile, home sales have fallen for eight consecutive months, a trend that indicates values have grown too rich for many Americans.