According to a new study, housing prices may drop as much as 20% in more than 180 markets nationwide if the US economy spirals into a recession.
Experts at research firm Moody’s Analytics claim that homes in 183 of the 413 largest regional housing markets in the country are “overhauled” by more than 25%
A map based on the data was published by Fortune. It shows that house prices may be on the brink of collapse in “bubbly” markets.
The firm suspects that the Boise market is 72% over-priced, Charlotte is 66% over-priced and Austin, Texas is 61% over-priced.
The forecast is much darker than other reports from the Mortgage Bankers Association, Fannie Mae, Freddie Mac, CoreLogic, and Zillow, all of which forecast single-digit declines.
While other agencies such as Fitch Ratings envisions US home prices dropping as much as 15%
According to Reuters, Existing home sales have fallen for six straight months and have hit their lowest level since May 2020.
