Investment firm Goldman Sachs has warned investors that a downturn in the American housing market is likely in the coming months.
“We expect home price growth to stall completely, averaging 0 percent in 2023,” Goldman strategists said in a note to clients, according to Fox Business. “While outright declines in national home prices are possible and appear quite likely for some regions, large declines seem unlikely.”
The recent decline in purchasing intentions and worsening affordability point to home sales weakening, which could push down prices, it stated.
Goldman is projecting a housing GDP decline of 8.9 percent in 2022 and 9.2 percent in 2023. This year, the firm is expecting existing home sales to drop by 17 percent and new home sales by 22 percent. High mortgage rates are seen as a drag on housing….