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We're starting to see prices decrease right now, since high interest rates are holding. The big analytics firms think we will see a return to affordable housing in 2024 as long as the fed continues to raise interest rates. The reality for larger cities is that prices will most likely stabilize and possibly decrease slightly, but never return to reasonable. Lots of people are in 2% mortgages right now on homes with inflated values. Those people are never moving unless life forces them to. So while rising interest should decrease housing affordability and force prices back down, inventory will remain low, keeping prices pretty stable. Areas with abundant inventory should see a return to normalcy, but for big popular cities, this is probably the new normal. Unfortunately nobody has a crystal ball, and we can't be sure of anything. But this is what the experts think.
That isn't really holding up this year. Interest rates are correlated with price increases. Prices corrected after the initial increase but have since continued to increase. While the cost to borrow has gone up, the reason for increased interest rates will always drive up prices. The federal reserve will raise interest rates if inflation is high (driving up nominal prices) or if employment is too high (increasing demand). Home prices will decrease if there is a recession but then the fed will lower rates to fight unemployment (assuming inflation isn't an issue).
In the US home prices are only down 0.5% year over year. In my high cost of living area (SF Bay area), prices are down 10% but climbing every month. At the current rate of home price growth, the Bay area will be back at all time highs this winter/spring.
https://ycharts.com/indicators/case_shiller_home_price_index_national#:~:text=Case%2DShiller%20Home%20Price%20Index%3A%20National%20is%20at%20a%20current,0.50%25%20from%20one%20year%20ago.