Home sales have fallen almost 30% since October 2020. Goldman Sachs is predicting that the decline will continue over the next few months. According to a recent report, the investment group has linked the housing woes to a "sustained reduction in affordability, waning pandemic tailwind, and recent decline in purchasing intentions".
In turn, Goldman Sachs points to the importance of falling housing supply levels, which are "well below pre-pandemic levels".
Historically, the researchers of the group indicated that the housing market has always gone hand in hand with the global economy. This led to an "oversupply as people were forced to sell their homes due to unemployment" in times of recession and economic crisis.
Repentance in the purchase of homes
Three out of four buyers who purchased a home between 2021 and 2022 now regret their decision, according to a study by Anytime Estimate. The real estate consultant points out that this discontent is related to the fact that recent buyers "did not benefit from the increase in the value of homes"; a fact that is closely related to this loss of property value.
Currently the average price of a first home is $510,000, however, Moody's warns that the possible collapse of the market will cause the value of each property to fall by up to another 20%.