Out West, the correction was significantly sharp as markets like Phoenix and Seattle noticed dwelling costs fall 10.4% and 16.3%, respectively, from their peak. Within the jap half of the nation, the correction is way 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 shedding steam.

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

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

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

That mentioned, if mortgage charges stay over 6%, it’s doable 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 raised perceive the place nationwide dwelling costs may head subsequent, Fortune rounded up revised forecasts from seven main analysis companies.

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

Zillow: Economists on the dwelling itemizing web site forecast that U.S. dwelling values, as measured by the Zillow Dwelling 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. dwelling costs, as measured by the FHFA US Home Value Index, falling 0.6% in 2023 and one other 1.4% dip in 2024. It then expects nationwide dwelling costs to rise 2.1% in 2025. “Whereas we might nonetheless characterize the trail for the nationwide dwelling worth index as flat, we at the moment are forecasting a number of quarters of year-over-year declines within the stage of nationwide dwelling 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. dwelling 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 mission 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. dwelling 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 charge of 6.5% in 2023 and 5.9% in 2024.

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

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

The chart beneath reveals 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? Comply with me on Twitter at @NewsLambert.