In short, considering all factors, Goldman predicts a 22% decline in new home sales before the end of the year, a 17% drop in sales of existing homes, and 8.9% in total housing GDP. Home prices have skyrocketed across the country, and as mortgage rates rise, affordability will spiral out of control in certain markets. This will slow sales and could hurt borrowers who need to sell their home but can't. BANGALORE, August 30 (Reuters) - United States, United States are skyrocketing.
House prices will rise at their weakest pace in more than a decade next year, as worsening affordability affects demand, according to analysts surveyed by Reuters, who said prices must fall by double digits to be valued fairly. The housing shortage frenzy over the past two years during the pandemic, backed by near-zero interest rates, has inflated home prices by more than 40% during that time, leaving many first-time buyers out. However, with the increase in mortgage rates following a cumulative increase of 225 basis points in interest by the U.S. UU.
,. Federal Reserve: Since March and more expected in the coming months, a slowdown was inevitable in a sector highly sensitive to the cost of loans. House prices would rise 14.8% on average this year, slower than the current rate of around 20%, but higher than the May survey's prediction of 10.3%. These forecasts are based on the S&P CoreLogic Case-Shiller composite index for 20 metropolitan areas.
The predicted slowdown was in line with a separate Reuters survey that showed a 50% chance that the U.S. UU. Recession in the next two years. Nearly 80% of the respondents (16 of 21) who answered another question said that prices had to fall by 10% or more to be valued fairly, including two who said 30% or more.
However, there were notable inconsistencies in the answers. Some rated the market as extremely overvalued and provided modest figures to bring average prices to their fair value, while others, who considered it less overvalued, said a larger correction was needed. While about a third of taxpayers predicted a total fall in prices at some point over the next two years, they were all in single digits. Most of the respondents said it would take several years before home prices were valued fairly, and some said it would never happen.
Japan intervened in the foreign exchange market on Thursday to buy yen for the first time since 1998, in an attempt to shore up the battered currency after the Bank of Japan was left with ultra-low interest rates. Create the strongest argument based on accredited content, attorney-editor experience, and industry-defining technology. The most complete solution for managing all your complex and ever-expanding tax and compliance needs. The industry leader in online information for tax, accounting and finance professionals.
Access unparalleled financial data, news and content in a highly personalized workflow experience on desktop, web and mobile devices. Explore an unparalleled portfolio of historical and real-time market data and information from sources and experts around the world. Search for people and entities with the highest risk around the world to help discover the risks hidden in business relationships and human networks. According to the latest exclusive housing data from Moody's Analytics, as reported by Fortune, home prices will rise 0% next year (202), a significant decrease from the 19.7 percent price growth experienced by the real estate market the previous year.
The researchers mentioned other factors affecting house prices: while inventories have begun to normalize and home construction is picking up, bottlenecks in the supply chain will continue to delay completion times, limiting influx. The housing fever caused by the pandemic had an enormous impact on the West, especially in growing states such as Idaho and Utah, which offered more space and larger houses at a relatively lower price than large cities in states such as New York and California. When the housing bubble grows and the pressure increases, the housing market is likely to crash when several factors come into play. The broader view of several housing analysts is that demand for housing will continue to increase due to several factors.