Source: Yahoo! —
The U.S. housing market might finally be nearing the bottom. At least that’s according to Goldman Sachs.
Just two weeks after Goldman Sachs downgraded its outlook for the U.S. housing market in a paper titled Getting Worse Before Getting Better, the investment bank reversed course on Jan. 23 in a paper titled 2023 Housing Outlook: Finding a Trough.
Instead of U.S. home prices falling 6.1% in 2023, which was their Jan. 10 prediction, researchers at the investment bank now expect national home prices to end 2023 down just 2.6%.
By the time U.S. home prices bottom out this summer, Goldman Sachs says, national home prices will be down around 6% from its June 2022 peak. Previously, Goldman Sachs researchers were expecting that peak-to-trough decline to come in closer to 10%.
“We expect a peak-to-trough decline in national home prices of roughly 6% and for prices to stop declining around midyear. On a regional basis, we project larger declines across the Pacific Coast and Southwest regions—which have seen the largest increases in inventory on average—and more modest declines across the Mid-Atlantic and Midwest—which have maintained greater affordability over the past couple years,” wrote the researchers.
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