- Stoic Markets
- Stoic Finance | Goldman Sachs Predicts Housing Meltdown
Stoic Finance | Goldman Sachs Predicts Housing Meltdown
Goldman Sachs prediction for the housing market in 2024 is bad news...
Goldman Sachs’s Existential Crisis For The Housing Market
The housing market has been on the brink of chaos for years at this point, its been more volatile than in any other time in history, with interest rates being hiked harder than ever before as well.
The only people who say everything is okay are those with their heads buried in the sand, and we’ve finally got to the point where even the banks aren’t willing to be so naive anymore.
Goldman Sachs have now flipped their tune, they’re worried about what is to come, and they’re sounding the alarm.
Rates staying higher for longer is now well accepted, and this will have an impact on the housing market because it is literally impossible for it to not.
Goldman Sachs’ Exact Claims
When it comes to how the Federal Funds Rate impacts average mortgage rates in the US, GoldMan Sachs are officially predicting that the average mortgage interest rate will remain higher than 6% well into 2026.
Already average mortgage rates are touching close to 8%, a ridiculous increase from what we were seeing just a couple of years ago.
Goldman Sachs see this scenario going a certain way, as a total collapse in transactions across the housing market is what they see as a result. They’re officially expecting total home sales to drop to its lowest level in more than 3 decades,
This isn’t even adjusted per capita or on a population basis. So when the growth of the US population is taken into account, Goldman Sachs are expecting the weakest housing market with the fewest home sales in more than 50 years.
Essentially GoldMan are predicting that the housing market is going to get more unaffordable not less, and for years into the future.
As long as there is no major recession, geo-political shock or strong economic downturn, then after 5 or maybe 10 years of this sustained problem, there might be light at the end of the tunnel.
If a recession does come within the next 4 to 5 years, the delicate balance of supply and demand will be tipped out of whack, and suddenly these 8% mortgage rates become real for millions of people, and everything falls apart.
Atleast There Aren’t Any Dark Clouds On The Horizon!
We are still witnessing the largest war in Europe since WWII wage in front of us, and it’s not stopping.
We’re witnessing a massive conflict in Israel and Palestine which has sent politicians on all sides panicking.
We’re watching Houthi Rebels, try to cut off the worlds access to its single most important waterway.
We’re seeing tensions between China and the West get worse, as China tells us time and time again they are going to invade Taiwan, and the West responds each time threatening war if they do.
We’re watching the oil producing nations of the world drift away from American hegemony, as they feel alienated and fearful of America’s overbearing nature.
The potential catalysts for a recession are literally everywhere, and all it takes is one to spiral even just a little bit out of control, for that to impact some industry that employs people in the west, and for the rest of the housing dominos to fall.
We’re Standing On A Knife-Edge
The only way I can be sure of my families and my security is through the digital businesses I have built over recent years.
And I’ve been inundated with people asking how I did it, and whether or not its something that they should pursue as well.
For those who are interested in building a digital business, I’m running a FREE Live Workshop today at 3pm EST…
All you have to do to learn how to build a digital business just like I have, is register with this link right here: https://event.webinarjam.com/channel/Thegrowthformula
I’ll only be running this once, and in it I’m going to be teaching you the exact steps I used to build a digital business with no experience and being the least tech-savvy person I know.
Register for the Free Live Workshop here: https://event.webinarjam.com/channel/Thegrowthformula
I don’t usually run this, but I’ve simply had too many messages from individuals asking for my help over recent weeks since starting Stoic Finance back up,
And this Live Workshop allows me to help everyone at once, which simply wouldn’t be possible for me to do any other way!
If you’re a little later to the party and it’s already past 3pm EST, then you can join the live call here: https://event.webinarjam.com/go/live/2/7y4w6amiqsmsw