4 U.S. Cities Facing Massive Economic Crash
This is not good.
Goldman Sachs is now predicting that home values will worsen through 2023 thanks to a number of factors including skyrocketing interest rates and declining home values.
Goldman Sachs is predicting that things will get so bad that four U.S. cities will suffer from catastrophic dips that will mimic the 2008 housing crisis.
According to Fox, the firm predicts that four cities: San Jose, California; San Diego, California; Austin, Texas; and Phoenix, Arizona, will see dramatic increases before they see drastic decreases of 25% or more.
These levels of decline are almost similar to how bad things were in the 2008 Great Recession when home prices fell by around 27%.
Goldman Sachs strategists explained, “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. 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).”
What’s worse is that just last year, mortgage rates increased from 3% to 6%.
Americans living in the above mentioned 4 cities should think very carefully about their next steps when it comes to making decisions regarding their real estate investments.
