Is the U.S. Headed for a Housing Market Crash in 2023?

Source: Newsweek — 

High mortgage rates, soaring inflation, rapid growth over the past couple of years and other factors have been at the center of recent discussions on the fate of the U.S. housing market.

Though some experts—such as Barry Sternlicht, CEO of the private equity company Starwood Capital Group—have warned that the market is heading for a crash, others believe that any market adjustments will not be quite that severe.

As 2022 comes to a close, economists told Newsweek that although the housing market is currently in the midst of a correction, they don’t expect to see it crash altogether in the new year.

The difference between a housing market crash and correction is that a correction’s impacts are not as far-reaching and severe.

“I think a crash would be consistent with a lot of foreclosures: people losing their homes with prices falling below the amount of mortgage debt that’s owed, and people giving up and being forced or voluntarily leaving their homes,” Mark Zandi, chief economist of Moody’s Analytics, told Newsweek.