{"id":1825749,"date":"2023-01-27T07:35:35","date_gmt":"2023-01-27T12:35:35","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1825749"},"modified":"2023-01-27T07:39:14","modified_gmt":"2023-01-27T12:39:14","slug":"goldman-sachs-predicts-2008-style-housing-crash-in-these-cities","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/goldman-sachs-predicts-2008-style-housing-crash-in-these-cities\/","title":{"rendered":"Goldman Sachs Predicts 2008-Style Housing Crash in These Cities"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgoldman-sachs-predicts-2008-style-housing-crash-in-these-cities%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1825749&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div class=\"featured featured-video video-ct\">\n<div class=\"contain\">\n<div class=\"info\">\n<div class=\"caption\">\n<p>Ara Hovnanian, CEO of Hovnanian Enterprises, discusses the current state of home builders as well as whether the housing market has reached its bottom in &#8216;The Claman Countdown.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.foxbusiness.com\/category\/goldman-sachs\" target=\"_blank\" rel=\"noopener\">Goldman Sachs<\/a> Expect home values to decline through 2023 due to skyrocketing interest rates, and falling housing prices.<\/p>\n<p>This month, the firm wrote to its clients that it predicted four cities in the United States would experience the worst dips. It draws comparisons with the 2008 housing crash.<\/p>\n<p>San Jose, California, San Diego, California, Austin, Texas, and Phoenix, Arizona will see increases that are noticeable before any drastic drops of more than 25 percent.<\/p>\n<p>These declines will be similar to 2008&#8217;s Great Recession. According to the S&#038;P CoreLogic Index Case-Shiller, home prices in the United States fell by around 27%.<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/economy\/goldman-sachs-announces-reduction-asset-management-investments\" target=\"_blank\" rel=\"noopener\"><strong><u>GOLDMAN SACHS ANNOUNCES REDUCTION IN ASSET MANAGEMENT INVESTMENTS<\/u><\/strong><\/a><\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2023\/01\/931\/523\/HEALTH-CORONAVIRUS-GOLDMAN-e1673383392801.jpg?ve=1&#038;tl=1\" alt=\"Goldman Sachs\"   style=\"display:none\"><\/div>\n<div class=\"caption\">\n<p><span>Goldman Sachs predicts that home values will decline through 2023 due to skyrocketing interest rates, and falling housing prices.<\/span><span> (Reuters Photos)<\/span><\/p>\n<\/div>\n<\/div>\n<p>&#8220;Our 2023 revised forecast primarily reflects our view that interest rates will remain at elevated levels longer than currently priced in, with 10-year Treasury yields peaking in 2023 Q3,&#8221; According to the New York Post, strategists at Goldman Sachs wrote. &#8220;As a result, we are raising our forecast for the 30-year fixed mortgage rate to 6.5% for year-end 2023 (representing a 30 bp increase from our prior expectation).&#8221;<\/p>\n<p>In 2022 <a href=\"https:\/\/www.foxbusiness.com\/category\/real-estate\" target=\"_blank\" rel=\"noopener\">mortgage rates<\/a> It jumped from 3% up to 6%<\/p>\n<p>&#8220;This [national] decline should be small enough as to avoid broad mortgage credit stress, with a sharp increase in foreclosures nationwide seeming unlikely,&#8221; Goldman Sachs wrote. &#8220;That said, overheated housing markets in the Southwest and Pacific coast, such as San Jose MSA, Austin MSA, Phoenix MSA, and San Diego MSA will likely grapple with peak-to-trough declines of over 25%, presenting localized risk of higher delinquencies for mortgages originated in 2022 or late 2021.&#8221;<\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2022\/01\/931\/523\/Phoenix.jpg?ve=1&#038;tl=1\" alt=\"Phoenix\" \/><\/div>\n<div class=\"caption\">\n<p><span>San Jose, California, San Diego, California, Austin, Texas, and Phoenix, Arizona (pictured) will see increases that are noticeable before any drastic decreases of over 25%.<\/span><span> (iStock \/ iStock)<\/span><\/p>\n<\/div>\n<\/div>\n<p>According to the bank, these cities will be affected by the <a href=\"https:\/\/www.foxbusiness.com\/category\/economy\" target=\"_blank\" rel=\"noopener\">lowest prices<\/a> This was because they were too disconnected from the fundamentals during COVID-19&#8217;s housing boom.<\/p>\n<p>Goldman Sachs forecasts that several Northeastern and Southeastern markets will experience milder corrections.<\/p>\n<p>According to the firm, home prices will drop slightly in New York City (-3.3%) and Chicago (-1.8%), while prices in Baltimore (+0.5%) or Miami (+0.8%) will rise.<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/markets\/federal-reserve-investigating-goldman-sachs-consumer-business\" target=\"_blank\" rel=\"noopener\"><strong><u>FEDERAL RESERVE INVESTIGATING GOLDMAN SACHS&#8217; CONSUMER BUSINESS<\/u><\/strong><\/a><\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2020\/01\/931\/523\/Miami-iStock.jpg?ve=1&#038;tl=1\" alt=\"Miami\" \/><\/div>\n<div class=\"caption\">\n<p><span>New York City&#8217;s and Chicago&#8217;s home prices will likely drop slightly, while Baltimore and Miami (pictured above) will see increased prices.<\/span><span> (iStock \/ iStock)<\/span><\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.foxbusiness.com\/apps-products\" target=\"_blank\" rel=\"noopener\"><strong><u>GET FOX BUSINESS ON THE GO BY CLICKING HERE<\/u><\/strong><\/a><\/p>\n<p>&#8220;Assuming the economy remains on the path to a soft landing, avoiding a recession, and the 30-year fixed mortgage rate falls back to 6.15% by year-end 2024, home price growth will likely shift from depreciation to below-trend appreciation in 2024,&#8221; Goldman Sachs wrote.<\/p>\n<p>At its peak in November, the average 30-year fixed mortgage rate stood at 7.37%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ara Hovnanian, CEO of Hovnanian Enterprises, discusses the current state of home builders as well as whether the housing market has reached its bottom in &#8216;The Claman Countdown. Goldman Sachs Expect home values to decline through 2023 due to skyrocketing interest rates, and falling housing prices. This month, the firm wrote to its clients that &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1825752,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[16667,5037,6444,9678,4344,5713,9679],"class_list":["post-1825749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-2008-style","tag-cities","tag-crash","tag-goldman","tag-housing","tag-predicts","tag-sachs"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1825749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1825749"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1825749\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1825752"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1825749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1825749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1825749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}