Connect with us


Goldman Sachs: Home prices will rise another 16% by the end of 2022




But as high as the prices are, they haven’t peaked yet, according to a new report from Goldman Sachs.

The investment bank predicts that home prices – already at record highs – will rise another 16% by the end of 2022.
Despite price increases of 20% over the past year, Goldman Sachs analysts suggest housing remains “relatively affordable” thanks to historically low mortgage rates. But continued strong demand from buyers and persistent low inventory will continue to push prices even higher, according to the report.
Of course, the inventory picture has improved a bit since the spring, with more homes for sale and price growth moderating a bit. But Goldman analysts say this imbalance between supply and demand is expected to continue until next year.

But it is questionable whether demand will remain as strong in the future, given the high prices. About two-thirds, 66%, of respondents to a University of Michigan homebuyer sentiment survey said now is not a good time to buy a home, according to the report. This is the highest since the early 1980s.

But owners today remain “reluctant bulls, who still intend to buy even if they think it’s a bad time,” Goldman analysts wrote.

How many houses can I afford?
Goldman Sachs’ model looked at the supply, demand, affordability, and prices of homes. He predicts that strong demand and tight supply will gradually erode affordability and make homes so expensive that more people will leave the market. This reduced demand will ultimately allow more inventory to be in the market and the imbalance between supply and demand will eventually ease. But not until prices jump another 16% by the end of next year.
In addition to housing prices that continue to rise, rents will also continue to rise, analysts said, and regulatory efforts by the White House, Congress or individual states or municipalities to alleviate the housing shortage may fail. not be enough.

Political wills have disagreed over efforts to relax zoning rules and other regulatory constraints that have slowed housing construction for decades. This is despite economic research that shows such efforts would boost supply and lower house prices and rents, according to the report.

Some of the successful efforts include California’s recent abolition of single-family zoning in the state, which could mean the 60,000 new single-family homes allowed in the state each year could grow into thousands more units, notes The report.

Nationally, the White House plan to use housing funding from the Reconciliation Bill to increase the supply of affordable housing may not have the intended effects if many of the housing subsidies and tax subsidies do offered are reduced.

“As a result, changes at the national level appear unlikely at this time, and limited changes at the national and local level are only a partial step towards reducing the housing shortage,” analysts wrote. Goldman in the report.




The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos


to request, modification Contact us at Here or [email protected]