Phoenix could see a 2008 like slump in home prices says

Phoenix could see a 2008-like slump in home prices, says Goldman Sachs report – ABC15 Arizona in Phoenix

PHOENIX – Is a 2008-style home burglary headed for the Valley? That could happen, according to a recent Goldman Sachs forecast sent out to clients.

The New York Post quoted Goldman Sachs’ note saying four markets — San Jose, California; Austin, Texas; San Diego, California; and Phoenix – are expected to see house prices fall by about 25%.

“Goldman credits these cities with the lowest prices in the coming year for getting too far removed from fundamentals during the pandemic housing boom,” the New York Post said.

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

ABC15 has reported extensively on the rising real estate prices in the Valley and the affordable housing crisis in recent years.

Last year we reported on the housing market shortage in Phoenix. According to publicly available data from Redfin, the state’s housing stock, including Phoenix, was at its lowest available number of houses in a decade.

Aside from the cost of housing in Phoenix, Arizona has one of the highest inflation rates in the country, according to experts. These numbers have since declined slightly.

The Phoenix Business Journal recently reported that homebuyers in the greater Phoenix area are gaining some leverage as Phoenix topped Knock’s list of the top five buyers’ markets for 2023 for the third straight month.