There will be housing prices adjustment 10-25% depending on the area, due to high interest rates, high inflation and coming recession which has already started there will be layoffs so it's inevitable for housing prices to come down. This will be good opportunity for those with money to buy rental or second homes.
We won’t see near the downturn in the mountain and Southern Southern states, where we are just so far behind the demand it’s hard to fathom. Building will continue especially in multi family housing where cheap materials and crews and insane rent levels mean quick and easy money.
On the coasts, outside of a few major crown cities like NY and SFO, the market will stay soft for a long, long time. I really don’t expect any big outright drops in prices, but the next 10 years of inflation combined with stagnant prices will cut the real values by as much as half.
Even today, they claim housing went up by 7.5% in August, but that’s still a drop of 1% of value in an 8.5% inflation environment. Inflation isn’t going away for a long time, which will adjust the market significantly over time.
