Source: KSL —
SALT LAKE CITY — As the high interest rate-induced U.S. housing slump deepens, national housing experts and economists are watching home prices dip across the country — with some regional pockets dropping much faster than others.
Predictions vary for just how deep and widespread home price declines will be leading into 2023 and beyond, but at least one national economist is forecasting national home prices to decline up to 5%. But if the nation’s economy enters a recession? That prediction bumps up to a 5% to 10% national price decline.
That’s what Moody’s Analytics chief economist Mark Zandi told Fortune, which reported Moody’s quarterly analysis on Tuesday.
According to Moody’s analysis, there are now 210 housing markets across the nation that are “significantly overvalued” — or overvalued by more than 25%. In those markets, Moody’s predicts home prices to fall 5% to 10%. If a recession hits? Home prices in those regions could take 15% to 20% hits.
