A day or reckoning in real estate prices, along with most other things, has to be at hand. Surely it is? If you want to realize a gain from this stupidity you better sell fast and not by. It is all timing and most are not successful at it.
People made a lot of very bad decisions because of and since covid. biden just made them all worse. Eventually they will have to pay for them with a realized loss. Trump's misguided summer of free money and no work was the spark that kindled the fire. That big hole in production led to shortages and the start of rampant inflation. biden added insult to injury by extending it all and then doubled down on it time after time.
No economy can sustain or even survive such a loss of productivity and unbridled spending and printing of money as we have in the last four years.
People think housing prices are too high. No! The value of the dollar has greatly gone down. As the spending value of the dollar decreases, investors put the money into housing in order to retain value. Where else can you preserve your earned wealth?
I have cash in banks and credit unions. I've watched as the dollar eroded in value due to idiotic government overspending causing inflation that exceeded any earned interest from the banked savings. So I shifted cash into real estate that will go to my children when I pass. Real estate prices will continue to increase, despite small decrease blips, and will not "crash" (short of destruction of our nation).
I would not trust Zillow for true estimates of housing values. Homes will only sell for what buyers are willing to pay. Zillow estimates fluctuate often without regard to value of comparable sales in a region, because some people exaggerate input to Zillow.
For instance, a 3-bdrm split-level home with double-car garages and big yard in a cul-de-sac a couple blocks away went on the market a couple weeks ago, asking $1.1M. Another home a few houses away around the corner from it, is a rancher 1-story home with 2-bdrms and a small single-car garage and small hilly yard went on the market last week, asking $1.08M. Zillow has them posted with the same value, no reflection of reality. The 1st split-level home now is posted as pending after a week on the market. The 2nd rancher home will probably sit on the market for a long time until the price is dropped to reflected its lower true value.