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Housing inflation will almost surely fall soon, say economists (cnbc.com)

• Shelter is the largest component of the consumer price index.
• The category, therefore, has a big influence on the direction of overall inflation.
• Housing trends feed through to the CPI with a substantial lag. Economists think a reversal is essentially guaranteed in the second half of the year.

I suspect the housing market has peaked and could drop rather dramatically.  Interest rates are of course one driver, pent up demand is another, which I'm guessing is also peaking.  Inventory of single family around here is still quite low.

Apartment buildings are going up all around us here, it's crazy, a few of them include office space on the lower floors, which I don't understand (office space is over built now).  Some condo towers are going up as well, but mostly it's apartments because younger folks have income but debt and no savings.

Are they rich?

When we were looking at houses, there was definitely downward pressure at the $500K price point, even for want of inventory. Lennar and DR Horton are cranking out the new builds out on the Lakeville and Carver prairie, but both the Mrs. and I were really unimpressed with the both the options and the price points for those options. 

Then again, split levels that should have been going for $350K were going for $400K to $425K with multiple offers in short order.

We had no problem whatsoever selling our house for well over what the posting price was.

Who the hell knows what to make of real estate anymore.

When we were looking at houses, there was definitely downward pressure at the $500K price point, even for want of inventory. Lennar and DR Horton are cranking out the new builds out on the Lakeville and Carver prairie, but both the Mrs. and I were really unimpressed with the both the options and the price points for those options. 

Then again, split levels that should have been going for $350K were going for $400K to $425K with multiple offers in short order.

We had no problem whatsoever selling our house for well over what the posting price was.

Who the hell knows what to make of real estate anymore.

Definitely been a wild ride for 3 years.

https://www.nbcnews.com/business/economy/home-foreclosures-rising-in-us-where-which-states-rcna88394

What I've been seeing is that the housing prices are based on a lack of inventory. The lack of inventory is based on people not being willing to sell, because there's no place to buy, so people are standing pat on their housing unless they MUST sell. Everyone knows that current prices are unaffordable, but even people with decent amounts of equity equity don't want to sell because it's so impossible to find a place they want to buy that they can actually win the multiple-offer war.

Well, foreclosures lead to "must" sales. Which could finally get inventory up, which should bring some prices down.

The question is how big will the correction be and how long will it take.

Pretty much nailed it. 

The cost of a home, the cost of insurance, for that home, and the cost of the money to borrow to acquire that home, combine with all the other costs, like gas, groceries, household goods, has really killed housing market.

more than anything else the lack of inventory is what is driving prices and as you say, no one wants to give up their 2.75 interest rate for the current rates which are mid 7s and higher.

while there is plenty of homebuilding going on, it’s actually quite low from a historical point of view. 

it is a bit of a vicious circle, because between the inventory, not being there and peoples unwillingness to move to that next house, whether it be first home or step up home, or retirement home, I think we’re going to see rough times in the housing market for at least another year, if not more 

not a problem for me

I only want to feel good about my retirement

I'm not worried about saving the planet