A 25% correction would be good for a lot of markets in the US.
Some places like Boise have doubled in three years. The prices are going to need to come down to make up the difference in the interest rates going up.
The fact is there are parts of US that have gone up in price way to fast. A 100% increase in a three year period is never sustainable.
People will eventually move to places like Wheeling, WV because it less than half the price of other cities.
Many people do not need to go into the office anymore to make a living. That means there is no reason to buy a house in the suburbs of city X anymore.
This could well be a new long term trend. And it could help the local economies of some economically struggling areas, if they experience an influx of new residents. A certain number of people will move to Wheeling, buy that house for half the price it would cost elsewhere, and benefit financially.
How many people love living in New York or other big cities? If you don’t need to live in New York or its suburbs to be in commuting distance of the office, and work is structured so you don’t need to go into the office 5 days a week, that’s a fundamental transformation.