Do you know that the real estate market is in a slump? No? Do not be alarmed; we are here to provide you with insights.
In a letter to clients on Tuesday, Goldman Sachs analysts expressed concern that the current drop in the United States housing market, which has raised concerns about a recession, still has even more to drop. As per the reports, Market pressure from high lending rates and housing prices has caused building, sales, and prices to decline.
For other crucial information, keep on reading Goldman Sachs Housing Market.
Table of Contents
Goldman Sachs Report:
A report titled “The Housing Downturn: Further to Fall” was published by Goldman Sachs researchers recently.
Consequently, according to the investment bank, the U.S. housing market will experience an overall decline by the end of 2022. The business predicted a 22% reduction in new home sales, a 17% drop in existing home sales, and an 8.9% loss in housing GDP.
Goldman Sachs also anticipated additional reductions in new home sales (down 8%), existing home sales (down 14%), and housing GDP (down 9.2%) in 2019. Moreover, Goldman Sachs Housing Market further added not to look for recovery.
Following the report’s release, it immediately became a discussion topic, and millions worldwide couldn’t stop talking about it, which prompted it to trend online.
Factors contributed to the housing market downturn:
The Federal Reserve’s war against inflation is what’s caused this fall in the housing market. The home market entered a slowing mode not long after the central bank started pushing higher lending rates in the spring. As a result, everywhere across the nation, prospective homeowners halted their searches, ultimately contributing to the housing market’s downturn.
Goldman Sachs Housing Market
Goldman Sachs issued a paper titled “The Housing Downturn: Further to fall” on Tuesday.
The growing difficulties of purchasing a house will contribute to decreased sales through the end of the year, as per the Goldman team, chaired by senior economist Jan Hatzius.
Moreover, according to the experts’ forecast released this week, existing home sales would slip to an annual seasonally adjusted pace of around 4.25 million in the fourth quarter, a 12% decrease from July’s rate.
The increase in housing prices is anticipated to slow down drastically in the future, which is what Goldman Sachs Housing Market has anticipated. Moreover, Only 1.8% price growth is what the investment bank predicts for homes in 2023.
About Goldman Sachs:
Established in 1869 by Marcus Goldman, the Goldman Sachs Group, Inc. is a global investment bank. And deals in services like Asset management, mergers & acquisitions, broking, and security underwriting.
Conclusion:
Ending this post, we have discussed the housing market recession that has been going on, what caused it and a little background about Goldman Sachs Company and its report on the housing market. For more info about Goldman Sachs, you can check out this link
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