The likelihood of a severe downturn in the U.S. housing market has risen, according to an August 17 report from credit reporting agency Fitch Ratings.
“However, our ratings-case scenario provides for a more moderate pullback that includes a mid-single-digit decline in housing activity in 2023, and further pressure in 2024,” said Fitch, after it recently affirmed a stable outlook for U.S. homebuilders.
The credit agency’s Stable Outlooks for its U.S. homebuilder portfolio predicts that average home prices could sink by 10 percent to 15 percent in the case of a major housing slump, along with a 30 percent or more decline in housing activity over a multiyear period….