Out West, the correction was significantly sharp as markets like Phoenix and Seattle noticed residence costs fall 10.4% and 16.3%, respectively, from their peak. Within the japanese half of the nation, the correction is far milder as some regional housing markets, together with Cleveland, noticed costs decline by lower than 1% for the reason that peak.

However the story is already altering: Because the housing market strikes into its busier spring seasonal interval, the correction is dropping steam.

Certainly, among the many 200 largest housing markets tracked by the Zillow Residence Worth Index, solely 38% of main markets notched a month-over-month residence worth decline in February. On the top of the correction in September, 79% of markets fell on a month-over-month foundation.

Why is the house worth correction—which was already absent in some Northeast and Midwest markets—dropping steam?

For one factor, we’ve entered the seasonal interval the place demand picks up. Second, stock in March was 49.5% under ranges hit in March 2019. Third, housing affordability has improved a bit over the previous few months as mortgage charges got here again underneath 7% and lots of markets noticed residence costs come down a bit.

That stated, if mortgage charges stay over 6%, it’s attainable that the house worth correction may regain steam as soon as the housing market exits the busier spring season and enters into the slower season within the second half of the yr.

To higher perceive the place nationwide residence costs would possibly head subsequent, Fortune rounded up revised forecasts from seven main analysis companies.

CoreLogic: The true property analysis agency expects U.S. residence costs, as measured by the CoreLogic HPI, to rise 3% between January 2023 to January 2024. If CoreLogic is correct, then U.S. residence costs would finish 2023 again at worth ranges achieved on the top of the increase in June 2022.

Zillow: Economists on the residence itemizing web site forecast that U.S. residence values, as measured by the Zillow Residence Worth Index, will rise 1% between February 2023 and February 2024. Right here is Zillow’s regional outlook for over 300 markets.

Mortgage Bankers Affiliation: The commerce group’s newest forecast has U.S. residence costs, as measured by the FHFA US Home Worth Index, falling 0.6% in 2023 and one other 1.4% dip in 2024. It then expects nationwide residence costs to rise 2.1% in 2025. “Whereas we’d nonetheless characterize the trail for the nationwide residence worth index as flat, we at the moment are forecasting a number of quarters of year-over-year declines within the degree of nationwide residence costs. We had already been anticipating some fairly important declines within the West and Mountain areas of the nation,” write researchers on the Mortgage Bankers Affiliation.

Goldman Sachs: The funding financial institution expects U.S. residence costs, as measured by Case-Shiller, to fall 2.6% in 2023. That’d take us, Goldman Sachs says, to a 6% peak-to-trough decline. “On a regional foundation, we undertaking bigger declines throughout the Pacific Coast and Southwest areas—which have seen the biggest will increase in stock on common—and extra modest declines throughout the Mid-Atlantic and Midwest—which have maintained larger affordability over the previous couple years,” write Goldman Sachs researchers.

Fannie Mae: Economists on the agency predict that U.S. residence costs, as measured by the Fannie Mae HPI, will fall 4.2% in 2023 and one other 2.3% dip in 2024. Fannie Mae is presently modeling a mean 30-year mounted mortgage fee of 6.5% in 2023 and 5.9% in 2024.

Moody’s Analytics: The agency expects U.S. residence costs, as measured by the Moody’s Analytics Repeat Gross sales Home Worth Index, to fall 4.2% between the fourth quarter of 2022 and the fourth quarter of 2023. In complete, Moody’s expects a peak-to-trough U.S. residence worth decline of 10%. If a recession have been to manifest, Moody’s would count on a top-to-bottom home-price drop of 15% to twenty%.

KPMG: The Huge 4 accounting agency expects U.S. residence costs, as measured by Case-Shiller, to fall 8% in 2023. If KPMG’s newest forecast is correct, the U.S. housing market in 2023 would quickly expertise its sharpest residence worth decline since 2008, a yr that noticed nationwide residence costs plummet 11.9%.

The chart under exhibits the vary between essentially the most bullish 2023 forecast (by way of CoreLogic) and essentially the most bearish 2023 forecast (by way of KPMG).

Need to keep up to date on the housing market? Observe me on Twitter at @NewsLambert.