America's red hot housing market is cooling down fast sparking fears of a housing bust and crippling recession as nearly half of home sale prices are slashed in some areas.

After two years of buyers battling paying tens of thousands - or sometimes hundreds of thousands - over asking price to secure homes as millions fled the cities in favor of the suburbs during the pandemic, it appears the boom in over.

An increase in mortgage rates, rising house prices and uncertainty around Joe Biden's economy as inflation soars, are contributing factors to the slowdown, according to experts. 

Weighing in on the market trends, former hedge fund manager Michael Burry of 'The Big Short' fame, said in a now-deleted tweet on May 24, that the falling stocks and slowing home sales, remind him of 2008. 

Burry tweeted: 'As I said about 2008, it's like watching a plane crash.'  

In a statement, the chief economist with real estate giant Redfin Daryl Fairweather said: 'The picture of a softening housing market is becoming more clear, especially to home sellers who are increasingly turning to price drops as buyers become more cost-conscious under higher mortgage rates.'

That came following a report from the company that said that the amount of home sellers lowering their prices reached it's highest level since October 2019. 

The report says that one in five homes on the market across the country are seeing their prices lowered by owners. 

Boise, Idaho, which saw an influx of out-of-state migrants during the Covid-19 pandemic, was the worst hit as 40% of homes on the market there saw a price drop in April 2022.