The worst is over for the US housing market – and prices will stop crashing within 6 months, Goldman Sachs says

Source: Insider — 

The end is in sight for the US housing market’s troubles, according to Goldman Sachs.

Strategists at the US bank said this week that easing mortgage rates are likely to help the market find a floor within six months – with prices likely to have fallen around 6% from their peak when housing bottoms out.

“The sharpest declines for the US housing market are now behind us,” a team led by Goldman Sachs’ chief economist Jan Hatzius said in a research note.

Low interest rates, stagnating supply and generous fiscal policies fueled something of a house price bubble in the two years after the coronavirus pandemic hit the US in March 2020.