Home prices will sink in these cities that were once red hot as supply starts to overwhelm demand
- INSIDER
- Mar 1, 2023
- 1 min read
Updated: Apr 8, 2024
By late 2024, home prices will decline by 19% in Austin, 12% in Seattle, 16% in Phoenix and 15% in San Francisco compared to late-2022 levels, the bank said in a note on Thursday.
While the housing market overall remains tight, those four cities have seen big increases in inventory, and supply is overwhelming demand, analysts said.
Nationwide, the outlook on home prices is less bleak. Goldman sees a 6.1% decline for 2023, as mortgage rates head back up, returning to 6.5% recently.
In October, the 30-year fixed rate reached 7% for the first time since 2002 as bond yields continued to march higher amid the Federal Reserve's aggressive rate-hiking cycle.
The National Association of Realtors said sales of existing homes have dropped for 12 straight months, hitting the lowest level since 2010.
"Home sales are bottoming out," NAR chief economist Lawrence Yun said Tuesday, adding that buyers were also starting to gain more purchasing power and potentially benefit from lower home prices. "Homes sitting on the market for more than 60 days can be purchased for around 10% less than the original list price."
Comments