The United States had its first housing drop since the Great Financial Crisis. Goldman Sachs in a recently released paper titled “The Housing Downturn: Further to Fall” forecasts that the activity in the U.S. housing market will fall by the end of 2022. The investment bank also projects sharp declines this year in new home sales (22% drop), existing home sales (17% drop), and housing GDP (8.9% drop). Further, Goldman Sachs projects a decline next year as well in new home sales (another 8% drop), existing home sales (another 14% drop), and housing GDP (another 9.2% drop).
The highest level in American internet history for the term “sell my house” was searched for in the United States as of July 2022. Americans are currently coping with increased house and rent costs as well as worries about the recession. With rising mortgage rates and price rises across the board, serving home loans is becoming difficult for many Americans.
The analysis, by luxury real estate platform RubyHome reveals that searches for ‘sell my house’ exploded to over double the average volume within the past month, an unprecedented increase in Americans looking to sell their property. The data also reveals that searches for ‘sell my house for cash’ is also at an all-time high.
This comes at a time when the U.S. housing market sees mortgage rates doubling from this time last year (5.5% up from 2.8%), and according to Zillow, the average house price in America is up 20.7% on last year at $350,000.
The view held by RubyHome is – “With the rate of inflation skyrocketing in recent years, the value of a house has increased massively, meaning homeowners and sellers are in a prime position to reap the benefits, especially with any money left over from selling a property being able to help towards the growing costs of everyday items.
With Zillow’s report that the average house price in America has risen 20.7% from last year, it is clear to see why Americans are tempted to sell at this time. However, with affordable housing becoming increasingly challenging to come across throughout America, it will be interesting to see if these figures translate into actual sales and what this may mean for the housing market.”