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Housing Market Correction?

The Federal Reserve's interest rate hikes may be intended to give the housing industry a "reset," as chair Jerome Powell wanted, but it also may have further confused homebuyers and sellers on what to do next.

Powell said in an effort to cool "a red-hot housing market" to straighten a "big imbalance," now believes it will likely take a "difficult housing correction," to fix things.

"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.

• The housing market is in a correction, which could increse home inventory as the volume of sales declines. 
• Sellers will need to  have more realistic views on pricing as they realize the frenzy of multiple offers of last summer have passed.