Home Prices To Drop In Half From Here? | Melody Wright
She thinks that could very well happen in many markets over coming years
Contagion has been the trend of the US housing market this year as rising inventory and weakening prices have spread to more and more metros.
How bad has it become?
Well, Zillow just revealed that it’s data shows that 53% of all US homes lost value over the past 12 months, the most since 2012.
As we’re now poised to enter a new year, should we expect the situation to get better or worse in 2026?
To make sense of it all for us, we’re fortunate to welcome housing analyst Melody Wright back to the program.
She still predicts the unfolding correction in home prices will hit even harder than what the nation experienced during the GFC.
To hear the full details of her latest outlook, click here or on the video below:
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Adam’s Notes: Melody Wright (recorded 11.22.25)
EXECUTIVE SUMMARY:
Melody Wright predicts 2025 will be the first year of outright national home-price declines (flat to slightly down), with 2026-2027 delivering a full-blown bust worse than 2008.
Median home prices must fall roughly 50 % (much more in certain metros) to realign with stagnant household incomes; natural market forces will eventually overpower extend-and-pretend efforts.
The market remains frozen: only ultra-high-end homes are transacting, masking the true extent of value losses (53 % of homes already down per Zillow).
Distressed selling has begun in earnest
