Source: Fortune —
The U.S. entered into its first housing downturn of the post–Great Financial Crisis era. And the worst still awaits.
On Tuesday, researchers at Goldman Sachs released a paper titled “The Housing Downturn: Further to Fall.” The investment bank now forecasts that activity in the U.S. housing market will end 2022 down across the board. The firm projects sharp declines this year in new home sales (22% drop), existing home sales (17% drop), and housing GDP (8.9% drop). For perspective, Russia’s souring economy is only expected to see its GDP fall 3% this year.
And don’t expect relief in 2023. Goldman Sachs projects further declines next year in new home sales (another 8% drop), existing home sales (another 14% drop), and housing GDP (another 9.2% drop).
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