Goldman Sachs: Housing Market to Gradually Improve but Remain Below Pre-Pandemic Levels, Soft Landing Likely but Rate Cuts Not Expected Until Late 2024
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Goldman Sachs forecasts gradual increases in housing starts, new home sales, and existing home sales from 2023-2027.
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Existing home sales expected to remain below pre-pandemic and 2021 levels even by 2027.
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Goldman sees low risk of a recession in the US and believes the Fed can achieve a soft economic landing.
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Markets may be too optimistic about potential Fed rate cuts in 2023; more likely in 2nd half of 2024.
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Buying costs forecasted to level off in 2023 with possibility of decreases if mortgage rates fall.