Source: New York Post —
The US housing market still has “further to fall” in a recent downturn that has sparked fears of a recession, Goldman Sachs analysts warned in a note to clients on Tuesday.
The bank’s analysts expect home price growth in the once-booming market to “slow sharply” in the coming quarters, with declines to occur in some markets. The slowdown stems from dwindling demand from prospective homebuyers.
“We expect home price growth to stall completely, averaging 0% in 2023,” the Goldman analysts said. “While outright declines in national home prices are possible and appear quite likely for some regions, large declines seem unlikely.”
Buyers are faced with an affordability crisis due to surging mortgage rates and listing prices that hit fresh highs during the pandemic-era boom. The downtick in demand has blunted the impact of the “extremely limited available supply” of homes and prompted a price slump, according to Goldman.
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