Goldman Sachs housing market crash

House prices are likely to fall around 6% from their peak, but there could be steeper declines on the west coast, the bank warned.

That pushed up mortgage rates to multi-year highs, leading to a slowdown in housing demand. Two-thirds of Americans believe that a housing market crash is "imminent in the next three years", according to a The retreat in mortgage rates should eventually filter through into the market by making it cheaper to borrow to buy a house, which Goldman Sachs believe will eventually halt the slide in prices. "The sharpest declines for the US housing market are now behind us," a team led by Goldman Sachs' chief economist Jan Hatzius said in a research note. The end is in sight for the US housing market's troubles, according to Goldman Sachs. - A painful period for the US housing market looks like it's coming to an end, according to Goldman Sachs.

Goldman Sachs' latest home price predictions could be cause for concern. The multinational investment bank and financial services company says home prices, ...

These concessions include offering buyers money for home repairs and mortgage-rate buydowns as homeowners continue to sell homes for below the asking price. “Our 2023 revised forecast primarily reflects our view that interest rates will remain at elevated levels longer than currently priced in, with 10-year Treasury yields peaking in 2023 Q3,” company strategists wrote to clients. These “overheated” housing markets will see “peak-to-trough declines” of more than 25%, according to Goldman Sachs. fell by approximately 27%, according to the index. Goldman Sachs’ latest home price predictions could be cause for concern. This, in turn, will lead to risks of higher delinquencies for mortgages originated last year or late 2021, according to the company.

Is a 2008-like housing plummet headed for the Valley? It could happen, according to a recent Goldman Sachs forecast sent to clients.

PHOENIX — Is a 2008-like housing plummet headed for the Valley? [The New York Post](https://nypost.com/2023/01/24/goldman-sachs-sees-a-crash-for-home-values-in-these-4-cities/) said. [The New York Post](https://nypost.com/2023/01/24/goldman-sachs-sees-a-crash-for-home-values-in-these-4-cities/) cited the Goldman Sachs note, saying four markets — San Jose, California; Austin, Texas; San Diego, California; and Phoenix — will likely see housing price declines of around 25%.

San Jose, California; San Diego, California; Austin, Texas; and Phoenix, Arizona, will likely see noticeable increases before drastic decreases of more than 25% ...

"This [national] decline should be small enough as to avoid broad mortgage credit stress, with a sharp increase in foreclosures nationwide seeming unlikely," Goldman Sachs wrote. "Our 2023 revised forecast primarily reflects our view that interest rates will remain at elevated levels longer than currently priced in, with 10-year Treasury yields peaking in 2023 Q3," Goldman Sachs strategists wrote, according to the New York Post. These declines would be similar to those witnessed during the Great Recession in 2008. The firm wrote to clients earlier this month that it predicts four U.S. [mortgage rates](https://www.foxbusiness.com/category/real-estate) jumped from 3% to 6%. fell around 27% at the time, according to the S&P CoreLogic Case-Shiller index.

"As a result, we are raising our forecast for the 30-year fixed mortgage rate to 6.5% for year-end 2023 (representing a 30 bp increase from our prior ...

"This [national] decline should be small enough as to avoid broad mortgage credit stress, with a sharp increase in foreclosures nationwide seeming unlikely," Goldman Sachs wrote. "Our 2023 revised forecast primarily reflects our view that interest rates will remain at elevated levels longer than currently priced in, with 10-year Treasury yields peaking in 2023 Q3," Goldman Sachs strategists wrote, according to the New York Post. These declines would be similar to those witnessed during the Great Recession in 2008. The firm wrote to clients earlier this month that it predicts four U.S. [mortgage rates](https://www.foxbusiness.com/category/real-estate) jumped from 3% to 6%. fell around 27% at the time, according to the S&P CoreLogic Case-Shiller index.

Goldman Sachs says Phoenix is one of four cities that could see a housing crash to rival what we saw in 2008 – but a local expert says the numbers and ...

"Most stats that we see are for the Valley-wide, and that’s not accurate because real estate is hyper-local. Mortgage rates doubled in 2022 – from 3 to 6% – taking some buyers out of the game. Our records are showing that we just came out of a buyers market which was in December. If you are optimistic about mortgage rates then you’re going to feel pretty optimistic about this quarter and where prices might go." "What they were saying is not in line with what our local analytics were telling us," says Tina Tamboer with the Cromford Report. Back in 2008, we saw drops up to 27%.

Goldman Sachs is forecasting that four US cities should brace for a decline in housing prices of more than 25%, a plunge not seen since the housing market ...

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