As rates continue to rise but inventory remains incredibly low, I don’t see how we could see a 20% housing price correction, but if the spring season has a rush on listings and inventory spikes up it would quickly become a buyers’ market. The key will be available housing inventory, this will dictate if prices come down. If inventory remains low we could see further price increases.
Article: US home prices could tumble nearly 20% and Fed economists warn further rate hikes risk an even worse housing correction: ‘The bubble hypothesis merits attention’
For the US housing market to return to its fundamentals, they estimated that a 19.5% correction would be necessary.