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‘Coast to Coast’ Housing Correction Is Coming, Says Moody’s Chief Economist

US home prices will likely fall in the most overvalued markets, projects Mark Zandi. But it will fall short of a crash. 

Bloomberg business news
Housing Markets Are Bubbling All Over the World

A housing correction will reach from “coast to coast” in the US, but it will fall short of a crash, according to Mark Zandi, chief economist at Moody’s Analytics.

With the Federal Reserve introducing the biggest increase in interest rates in years to combat rising inflation, home prices will likely fall in the housing markets that are most “juiced,” says Zandi. Regions with signs of significant speculation, namely in the Southeast or Mountain West, can expect the pendulum to swing back. Cities and states due for a correction include Phoenix and Tucson in Arizona, the Carolinas, northeast Florida, and above all, Boise — “the most overvalued market in the country,” per Moody’s analysis.