Geopolitical conflicts seem to be the wild card and the one that could have further impacts on inflation, which is likely to persist longer than initially expected, says Selma Hepp, deputy chief economist at CoreLogic. That equity is sometimes all that stands between a homeowner and foreclosure when things get tough. Even though the report called the current housing market abnormal, the authors concluded that there is no expectation that fallout from a housing correction would be comparable to the 200709 crisis in terms of its magnitude. But theres always the risk that, even if home prices decrease, mortgage rates will continue to rise in the coming months. Lending laws are far more stringent, home price growth has already organically slowed and defaults are still relatively rare. US home prices have soared over the last decade, but could soon be on their . Are you sure you want to rest your choices? This growth is 1% higher than the peak of what I forecasted for 2021, up until March 18. Past performance is not indicative of future results. One crucial reason some people say this boom . Utah will see minor year-over-year price declines in the first and second quarter of 2023, but prices will begin to stabilize by the third and fourth quarter, he said. Nationally, a growing number of experts and firms are predicting U.S. home prices will fall, some expecting slight, single-digit drops, while others expect prices to fall by double digits, perhaps even over 20%. The business of ibuying - in which . Home values are indicative of many things, including the economy as a whole, geopolitical activities, and, as we've learned, a worldwide pandemic. History shows that the housing market peaks about every 18 years, followed by a crash (small or large). Most experts say that there's little chance that the U.S. will experience a collapse of the same magnitude as the 2008 crash. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Still, Shirshikov doesnt expect foreclosures to rise precipitously this winter as a result of the current rate environment. First, take a look at your larger . The last stand for forbearance housing market crash bros? This story is part of a series that asks housing experts to give their forecast for the next five years, how investors are impacting the market, and what state or federal intervention, if any, is needed. And the market circumstances that caused so many to end up upside down on their mortgages in 2008 arent present today. Home prices may not come down to a point where these folks can afford to buy. Strong job growth cities like Boise and Salt Lake City are harder to forecast, he said, as affordability issues keep first-time buyers from getting into the market. Utahs housing experts disagree over how much home prices will decline, though they remain confident that 2023 will not bring a full blown, 2007-like crash, and that Utahs strong job economy will still largely insulate it from any negative impacts of a recession. Here are what other organizations and firms are predicting: Glenn Kelman, CEO of Redfin, predicted on a Jan. 4 episode of Barrons Live that the real estate market, particularly when it comes to real estate agents, will experience a painful constriction in 2023.