Housing has never been this unaffordable - and home prices are only going to keep rising, Goldman Sachs says

Sat, 10/14/2023 - 05:45

An above shot of houses, yards, and streets. — US house prices will carry on rising despite record-low affordability levels, according to Goldman Sachs.
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Housing is even more unaffordable now than ahead of the 2008 crash, according to Goldman Sachs.
But the bank expects limited supply and borrowers being "locked in" at lower mortgage rates to drive prices even higher.
"We continue to expect home prices to rise at a slow pace," strategists said in a research note.

Don't expect US house prices to slip anytime soon despite record-high unaffordability levels, according to Goldman Sachs.

Average prices will jump 1.8% year-on-year in 2023 and then another 3.5% by the end of 2024 provided there isn't any unexpected economic turmoil, the bank said in a forecast published Wednesday.