Speaking to reporters in September, Fed Chair Jerome Powell made it clear that going forward the U.S. housing market would get "reset" by a "difficult correction."
"Houses were going up at an unsustainable fast level. So the deceleration in housing prices that we’re seeing should help to bring prices more closely in line with rents and other housing market fundamentals. That is a good thing. For the longer term what we need is supply and demand to get better aligned so that housing prices go up at a reasonable level and at a reasonable pace and that people can afford houses again. We probably in the housing market have to go through a correction to get back to that place," Powell said. "This difficult [housing] correction should put the housing market back into better balance."
