"Housing could be heading for its worst year since the last housing crash," said the 67-year-old Stack, who manages $1.3 billion for high net worth clients. "Expect home sales to continue on a downward trend in the next 12-plus months. And there's a significant downside risk to housing prices if a recession takes hold."
Last January, Stack was practically alone when he warned rising mortgage rates would expose housing's affordability problem and "the risk that today's highly inflated housing market will again end badly." The day after Bloomberg published his comments on Jan. 22, homebuilder shares began a 10-day slide, and ended the year down by more than a third.