Friday, February 3, 2023

Phoenix could see 2008-like plummet in housing prices, Goldman Sachs report says

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PHOENIX — Is a 2008-like housing plummet headed for the Valley? It could happen, according to a recent Goldman Sachs forecast sent to clients.

The New York Post cited the Goldman Sachs note, saying four markets — San Jose, California; Austin, Texas; San Diego, California; and Phoenix — will likely see housing price declines of around 25%.

“Goldman credits these cities as having the lowest prices in the coming year because they got too detached from fundamentals during the pandemic housing boom,” The New York Post said.

Mortgage rates are also expected to remain high as the country fights inflation.

ABC15 has extensively covered the rising housing prices in the Valley over the last few years, as well as the affordable housing crisis.

Last year, we reported about the Phoenix housing market’s inventory problem. According to publicly available data from Redfin, housing inventory statewide, and by extension, Phoenix, was at the lowest available number of houses in ten years.

Aside from Phoenix housing costs, experts say Arizona has been experiencing among the highest inflation rates in the country. Those numbers have since been slightly easing.

The Phoenix Business Journal recently reported that homebuyers in metro Phoenix are gaining some leverage with Phoenix topping Knock’s list of the top five buyer’s markets for 2023 for the third month in a row.

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