I thought home prices would plateau and not fall back but with the further actions by the fed and in the market I am starting to shift my view and home prices will probably come down a bit. At the moment I am of the thought that we could see as much as a 10% reduction in home values by next Spring. That of course still puts homeowners that have owned their home 3+ years well ahead of the game but those that have purchased in the last 12 months or over the next 12 months could find themselves a bit behind. Even with that said homeownership is a key wealth builder as the market will swing back to an appreciating market, the key to this is when will it happen? It is too early to say for sure but I would give my best guess at 12-18 months.
Article: The Fed Says the Housing Market Needs a ‘Correction.’ What Does That Mean?