Housing market won't come 'unstuck' until 2026, economists predict — here's why

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The economists cited a “one-time shift” in demand duringThe economists said they predict home prices will rise by about 4.5% in 2024 and 5% in 2025, then fall back to 0.5% in 2026 due t…

The US housing market will not come “unstuck” until at least 2026 — and home affordability won’t improve without a recession, a team of Wall Street economists predicted.

The housing market will not come “unstuck” until at least 2026 and home affordability will not improve without a recession“We view the forces that have reduced affordability, created a lock-in effect for homeowners, and limited housing activity will remain in place through our forecast horizon,” they added.

Increased rates and a “lock-in effect” — or lack of home transactions — will likely continue to fuel a decline in home sales, blocking young buyers from the market, Bank of America said.

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Housing market to remain 'stuck' until at least 2026, Bank of America saysThe bank sees a variety of factors lining up against both a major improvement in sales and a drop in prices.
Fuente: CNBC - 🏆 12. / 72 Leer más »