Home Prices Will Grow Again in 2022
According to Goldman Sachs: Home prices will rise another 16% in 2022 Home prices are currently up 20% year-over-year, but according to a new Goldman Sachs market forecast, they may not have reached their peak yet. Not even close. Goldman Sachs economists predict that home prices will grow another 16% by the end of 2022.
The rapid increase in home prices over the past year is due to a number of colliding factors, including low interest rates, tight housing inventory supply, pandemic-induced migration patterns, and an increase in millennials entering the home buying market. In addition, as fears of inflation increase, many investors are purchasing properties as a hard asset.
“The supply-demand picture that has been the basis for our call for a multi-year boom in home prices remains intact,” wrote a Goldman Sachs team of economists. And although inventory has slowly been increasing over the past few months, it is still remains below pre-pandemic levels.
Source: Housing Wire
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