Contrary to prior forecasts, Goldman Sachs is now predicting a spike in home prices this year. What’s driving this change? Their analysts suggest a mix of limited housing supply and a demand that seems to outpace predictions.
Surprisingly, despite mortgage rates being nearly twice of what they were three years prior, the rise in home prices remains relentless. A significant reason behind this is the limited number of homes up for sale, with current homeowners hesitating to let go of their properties.
July saw a remarkable 9% decrease in available homes compared to last year, and a staggering 46% decrease since before the pandemic’s onset in 2020, as per a Realtor.com report.
Current buyer behavior in the housing market, Goldman strategists observe, is adapting in ways that might not be sustainable in the long run.
With all these factors at play, the big question is, where does this leave potential homebuyers in 2023?
Dive deeper into this analysis to understand the future of housing affordability.
