Unfortunately for those sidelined buyers, there’s more bad news. In the next 15 months—through the end of 2022—Goldman Sachs is forecasting U.S. home prices will soar another 16%. While that represents a slight deceleration in the growth of home prices—which are up 17.7% over the past 12 months alone—it’s hardly price relief for buyers. Simply put: The investment bank thinks the housing market frenzy set off during the pandemic has a lot more room to run.
“The supply-demand picture that has been the basis for our call for a multiyear boom in home prices remains intact," the Goldman Sachs researchers wrote in their report. “Of all the shortages afflicting the U.S. economy, the housing shortage might last the longest.” They don’t see prices correcting anytime soon; in fact, they are forecasting another 6.2% jump in 2023.