US housing market decline to worsen in 2023, Goldman Sachs warns

The US housing market has been slowing down in the past few months as interest rates continue to climb.

“We expect home price growth to stall completely, averaging 0% in 2023,” Goldman strategist and economist Jan Hatzius wrote in a memo to clients. “While outright declines in national home prices are possible and appear quite likely for some regions, large declines seem unlikely.” Despite strategists predicting a small decline in home prices over the next year, prices are expected to remain high due to inflation and a limited inventory of homes.

In summary, considering all the factors, Goldman predicts a 22% decline in new home sales before the year is over, a 17% drop in existing home sales and 8.9% in the overall housing GDP.

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US housing market downturn to worsen in 2023, Goldman Sachs warnsHousing sector activity will likely slow sharply in coming months, according to Goldman Sachs economists, with price growth eventually falling to zero. Everything is in the red. Today. Stocks. Bonds. Foreign stocks. Gold. All red. BidenBoom FederalReserve
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US housing market downturn to worsen in 2023, Goldman Sachs warnsHousing sector activity will likely slow sharply in coming months, according to Goldman Sachs economists, with price growth eventually falling to zero. Everything is in the red. Today. Stocks. Bonds. Foreign stocks. Gold. All red. BidenBoom FederalReserve
Source: FoxBusiness - 🏆 458. / 53 Read more »