This post shows the US real estate price forecast for the next few years. For more information, see our Goldman Sachs Housing Market.
Are you currently living in a rental apartment? Do you long to own a home? A recent prediction by a real-estate expert is sure to inspire you to save. The United Stateshas very specific policies in regard to residential and commercial areas. The prices for these sites are dependent on many factors. There have been many difficulties in recent years when it comes to buying a home or vacant land. But, it is over with Goldman Sachs Housing Marketprediction. To learn more, please read our entire article to the end.
The Prediction/Report
Goldman Sachs analysts released a report on Tuesday titled “The Housing Downturn. Even More to Fall.” The bank expects that there will be a slowdown of the housing market in 2022. According to the investment bank, there will be significant drops in sales of new houses (-22%), home sales (-17% decrease) and housing GDP (+8.9% loss) by 2022. Despite the Russian economy being in disarray, it is still expected that GDP will decrease by 3%.
Goldman Sachs Housing Market
The United States housing markets experienced their first decline since the Great Depression. It is unlikely that the year 2023 will bring any relief. Goldman Sachs projects that new house sales will decline by 8%, existing home sales will drop by 14% and housing GDP will plummet by 9.2% within the next year. This is the worst scenario.
The inflation effect
Housing market slump has been caused by the Federal Reserve’s inability to lower inflation. After the bank raised mortgage rates this spring, the property market plunged. Many people stopped searching for houses in the United States, according to Goldman Sachs Housing Market. Federal Reserve believes that a slowing down of the housing market will have a trickle effect on the economy. It will help to reduce inflation and slow growth.
The increase in households may also explain the decline of the housing market. A Work From Home revolution, and the epidemic that accompanied it, led to a record number of household formations. Can you blame the millennials for not wanting their child to share a home office? Goldman Sachs Housing Market says that this trend is over.
The Result
Goldman Sachs predicts the housing market hitting bottom sometime in 2019. The investment bank predicts that property markets will rebound by 2024. Goldman Sachs expects this to lead to an annual growth of 3.5% & 3.8% in 2024 & 2025, respectively.
Conclusion
It is very easy to study the US realty market if you have a good understanding of all aspects. In this article, we have summarized Goldman’s entire prediction . According to our research, factors such as the inflation rate and construction time play an important role in the Goldman Sachs Housing Marketstudy.
