Though already having fallen and sparked fear of recession, home prices have further to go.
According to New York Post, “We expect home price growth to stall completely, averaging 0% in 2023,” the Goldman analysts said. “While outright declines in national home prices are possible and appear quite likely for some regions, large declines seem unlikely.”
Buyers are faced with an affordability crisis due to surging mortgage rates and listing prices that hit fresh highs during the pandemic-era boom. The downtick in demand has blunted the impact of the “extremely limited available supply” of homes and prompted a price slump, according to Goldman.