Mortgage rates will settle between 5%-6%, helping boost home sales, Zandi added.
The trend is especially evident among high-end properties, where the rise of multi-family towers in urban centers has lowered rents and impacted the single-family housing market.
That's because the added supply increases overall competition in the housing market as sellers of existing homes will be under more pressure to cut prices, he explained.
The rush to add inventory comes as the housing market faces a broad supply crunch, made worse by homeowners' resistance to sell their properties.
He reiterated that this will help boost housing sales, as long as a recession is avoided and incomes continue to rise.
Mark Zandi, Zandi, —