As lenders and brokerages adjust the 2022 outlook, Goldman Sachs is adding their two cents—and things are not looking much better from their vantage point.
A new report indicates that home sales will fall to a seasonally adjusted annual rate of 4.7 million in Q4 year. That would represent a 12 percent decline from the mid point of the year.
“The outlook for demand continues to benefit from a tight labor market and a continued demographic tailwind from millennials passing through their prime home-buying years,” the report reads. “However, the sustained reduction in affordability, waning pandemic tailwind, and recent decline in purchasing intentions … suggest that home sales are likely to fall further through year-end.”
Just last week, Fannie Mae adjusted its market outlook, predicting that total home sales will decrease by 16.2 percent this year. That is a further downward revision from last month when Fannie Mae analysts called for a decline of 15.6 percent.