Housing Market Poised for Eventual Rebound Despite Near-Term Headwinds
• Declining mortgage rates and a strong economy may help the housing market rebound after last year's declines.
• Home prices are still elevated, which is limiting affordability. Prices may need to moderate or decline to restore affordability.
• The market for existing homes has been frozen as sellers are reluctant to give up low rates. More existing home sellers may lower prices to sell.
• Single-family home construction should recover quickly due to shortages, other segments to follow as rates and economy improve.
• House prices likely to be the last segment to recover, may go sideways or down for 2-3 years to restore affordability.