U.S. Housing Market Downturn to Worsen in 2023, Goldman Sachs Warns
By Fox Business // September 6, 2022
ABOVE VIDEO: Housing market is ‘already’ in a downturn: CEO of the National Association of Home Builders
(FOX BUSINESS) – The U.S. housing market has likely tumbled into its first recession in more than a decade, and Goldman Sachs economists warned that investors should brace for the downturn to get worse.
In a note to clients, Goldman strategists predicted that activity in the housing sector will slow sharply in the coming months, with price growth eventually falling to zero in the third quarter of next year.
“We expect home price growth to stall completely, averaging 0% in 2023,” the Goldman analyst, led by Jan Hatzius, said. “While outright declines in national home prices are possible and appear quite likely for some regions, large declines seem unlikely.”
The analyst note comes as painfully high inflation and rising borrowing costs have forced potential homebuyers to pull back on spending.
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