Home Prices According to Goldman Sachs

Today, we are going to talk about an article by Yahoo! Finance that is discussing home prices according to Goldman Sachs. Housing analysts no longer think home prices will fall this year. They are forecasting a slight increase, with home prices returning to trend growth levels in 2024. Previously Goldman Sachs analysts had thought higher mortgage rates would put downward pressure on home prices. After a decline for seven months, home prices have gone back to climbing from February through May. The final month of decline was January of this year. The housing supply was about 2 million homes available pre-pandemic. Now, the supply is about 1 million homes. Housing affordability has worsened with higher mortgage rates, but homebuyers have swallowed these increased costs, nationally. Rounding out the article with this stabilizing news, "In addition, smaller and lower price homes have seen stronger price growth than larger, higher-quality properties. That said, we expect mortgage rates to fall by 100 basis points through the end of next year, somewhat stabilizing affordability". That being said, there is always something good that comes out of our meetings with prospective customers. We are in our model at 878 Boundary Boulevard in Rotonda (that’s the corner of Rotonda Blvd. East and Boundary Blvd.) from 9-3 Monday-Friday. If you would like to know more about land or homes in the local area, be sure to stop by and save a spot for your dream home today!