House prices have more to drop

 

Source: https://wolfstreet.com/2024/09/05/buyers-strike-deepened-in-august-despite-lower-mortgage-rates-listings-surge-home-sellers-slowly-respond-drop-prices/

Housing prices should bottom out in January.  Mortgage rates have already dropped (to about 6.85%) in anticipation of the Fed cutting rates later this month, but sales have not picked up.  I think the market will remain mostly frozen unless the Fed cuts rates by a total of 1%, which probably won't happen until March 2025.  By then we might be in a full-blown recession.