This post will reveal the future US real estate market. You can read the Goldman Sachs Housing Market prediction if you’re interested.
Are you currently renting? Are you a dreamer of owning your own home? The recent prediction of a real estate expert will excite you to begin saving. The United States has specific policies regarding residential and commercial areas. Prices for such properties are affected by many factors. In the past, many people have had difficulty buying houses or vacant land. It will all be over soon with Goldman Sachs Housing Market prediction. Please read the entire post to find out more.
Prediction/Report
Goldman Sachs analysts published a report entitled “The Housing Downturn – Even More to Fall” on Tuesday. The investment bank predicts a slowdown in the housing market before 2022. According to the bank, there will be significant declines in house sales this year (-22%) and current home sales (17%) as well as a loss of housing GDP (-8.9%). The Russian economy is in chaos, but the GDP is expected to decline by only 3%.
Goldman Sachs Housing Market
The United States housing market experienced its first drop since the Great Depression. There won’t be any relief in 2023. Goldman Sachs predicts that new house sales will fall by 8.8% and existing home sales will fall by 14%. Housing GDP is expected to drop by 9.2% over the next year. The worst outcome is still to come.
The Inflation Effect
Housing market slump is a result of the Federal Reserve’s efforts at reducing inflation. Soon after the Federal Reserve raised mortgage rates in spring, the property market crashed. Many Americans and Goldman Sachs Housing Market stopped looking for new homes all over the United States. According to the Federal Reserve, a drop in housing prices will have a trickle down effect on the economy. This will slow growth and help to curb inflation.
The rise in household numbers may be responsible for the decline in housing market. The Work From Home revolution and the epidemic caused a remarkable increase in household formation. Can you blame millennials not wanting to share their home office with their child. Goldman Sachs Housing Market claims this trend is over.
The Result
Goldman Sachs predicts that the housing market will reach its bottom in 2019 According to Goldman Sachs, the housing market will rebound in 2024. Goldman Sachs predicts that this will result in an annual increase of 3.5% and 3.8%, respectively, in 2024/25 and 2025.
Conclusion
If you are familiar with the relevant estate topics, it is easy to understand the US real estate market. This article contains Goldman’s complete prediction. Our research shows that the Goldman Sachs Housing Market study is affected by the construction time, inflation rate, pandemic and other factors.
Let us know what you think. We would love to hear your thoughts.