Are US Housing Prices About To Drop?

This morning the NAHB Housing Market Index showed a large 10-point drop in January. This is, in fact, the largest decline on record for the Housing Market Index. Traffic of  perspective buyers also had a large decline. The nine point decline in the traffic of perspective buyers is tied for the largest on record. (Feb 1994 and Oct 2001). The NAHB Housing Market Index has fluctuated with housing prices over the past 20 years. If this is a start of new downward trend in the HMI than housing price momentum may be about to fall as well.