Michael Cook, an investment analyst at Penn Mutual Asset Management, told Insider that he thinks prices trend back toward their levels before the pandemic began, especially in some of the hottest markets in the county.
"The U.S. housing market is due for a reset, given the extraordinary home price growth seen since the onset of the pandemic," Cook said.
José Torres, a senior economist at Interactive Brokers, said he thinks supply and demand dynamics in the market are moving in such a way that creates a perfect recipe for home price declines.
"A perfect storm is brewing in the real estate market due to near decade high construction levels and plummeting demand," Torres said.
Desmond Lachman, senior fellow at the American Enterprise Institute and a former deputy director at the International Monetary Fund, broke down for Insider why prices will drop 15-20% as buyer demand gets crushed by rising interest rates and a still-hawkish Fed.
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"They're going to keep monetary policy tight, even if inflation peaks," Lachman said.
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