The Housing Market is Toast (according to Goldman Sachs' latest forecast)

January 13, 2023

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What's important to know:

Goldman Sachs credit researchers expect home prices in several “overheated” metro areas to fall over 25% from peak levels.
Metro areas included in their forecast are San Jose, Austin, Phoenix and San Diego.
Austin, San Francisco, San Diego, and Phoenix are expected to see the biggest home price declines in 2023
Nationally, the Goldman team expects home prices to fall by roughly 10% this year from June 2022 levels, following their roughly 4% estimated decline in the second half of last year.
The Goldman home-price forecast is hinged on an expectation that interest rates will remain elevated for longer.
The team said their year-end forecast for the 30-year fixed-rate mortgage was revised higher by 30 basis points to 6.5%, but they expect it to retreat to 6.15% in 2024.

More tasty news in this shake

Goonies' Fan Snags Iconic House for $1.65 Million: A Childhood Dream Comes True

The buyer of the Oregon home from "The Goonies" has been revealed as Behman Zakeri, a managing partner and CEO from Overland Park, Kansas, who purchased the Victorian-era home that briefly appeared in the 1985 adventure comedy film for $1.65 million.
Zakeri identifies himself as "an 80s kid" and "avid collector" who loves pop culture from the said decade and is reportedly on "a mission to preserve and protect the landmark" for a new generation of fans.
Zakeri plans to live at the "The Goonies" house, which is considered a private residence, for "incremental periods" and is excited to be a part of the enduring legacy of ‘The Goonies’.

Veritas in Hot Water: Landlord Can't Pay Off Massive Loan

Veritas, San Francisco’s largest and most controversial landlord, is scrambling to raise capital after defaulting on a $448 million loan.
The default shows the challenges that San Francisco real estate owners will grapple with as loans become due, many properties like office buildings, hotels and apartments were financed with 10-year loans in 2013, which means that debt needs to be paid back this year.
Veritas is facing many financial challenges as the multifamily real estate sector is facing similar issues as the office, retail, and hotel-hospitality sectors, including the spiraling costs of debt, increased city regulations, increased taxes, more pandemic impacts, and the rising cost of doing business in San Francisco.

Up, Up and Away: Real Estate Drone Services Market Takes Off

The global real estate drone services market is expected to secure a valuation of US$ 398.9 million in 2023 and reach US$ 1,967.3 million by the end of 2033.
The increasing real estate industry will exhibit the demand for the real estate drone services market worldwide, service providers offer essential services like photos & videos of the building, mapping and inspection services to the customers.
Market development for real estate drone services should focus on increasing the awareness and accessibility of these services by creating engaging content, targeting advertising, partnering with industry organizations and working with local governments.

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