Inflation here? gas/grocery prices just continue to climb
When you inflation adjusted house prices, you see how far out of normal prices have become. From 70s-00s a house has cost about 200k +/- 25k. We have moved to 400k as the average. We could lose 25% and still be 100k over historical averages.
https://infogram.com/1pmneqdzzlwwzqt391egdelvw1szzg9mdd2I don't think there's a dramatic correction coming. Increased rates and a possible recession will certainly let a lot of air out but it's still a supply-constrained market - and I don't think that's going to change much. Between 2000 and 2020, the population of the United States grew by 50 million people. So the underlying fundamentals continue to drive the market and that's why housing market corrections are historically shallow and short-lived.
When you inflation adjusted house prices, you see how far out of normal prices have become. From 70s-00s a house has cost about 200k +/- 25k. We have moved to 400k as the average. We could lose 25% and still be 100k over historical averages.