Mark Zandi, chief economist at Moody’s Analytics, told Fortune magazine last week that the U.S. housing boom has ended, and we have entered a "housing correction."
"In terms of home sales, they're falling sharply. Housing demand is coming down fast. Home price growth [will] go flat here pretty quickly; we will see [home] price declines in a significant number of markets," Zandi says.
This "correction" will result in flat annual home price growth over the next year, the top economist predicts. Fortune notes this would be the intentional result of mortgage rate hikes meant to decelerate inflation by ending the housing boom and slowing construction. While the article reassures readers homeowners are better off financially than in 2008 and we won't face another foreclosure crisis, it provides analysis of which markets are "overvalued" and will likely see home prices drop between 5%-10% over the next year, or 10%-20% in the event of a recession.
Read the article and view the state-by-state map of where regional home prices are overvalued at Fortune.com.
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