Housing Market Faces Uncertainty Amid Debate Over Overvaluation

Some experts believe housing prices are overvalued and expect a market correction, while others think high demand justifies current prices.

Home prices in most major markets are above historical norms, indicating overvaluation, especially in the Sun Belt.

It's impossible to perfectly time real estate markets - no one wants to buy at the peak, but peaks are only clear in hindsight.

Mortgage rates play a big role in home affordability - if rates rise further, prices may fall; if they drop, prices could climb again.

Even if overvalued now, a 2008-style housing crash is unlikely due to buyer demand exceeding supply and tighter lending standards.