The housing market has faced stagnation, with construction starts and transactions remaining nearly unchanged for the past three years. Current mortgage rates exceeding 7% are contributing to this challenging environment.
Goldman Sachs warns that conditions may deteriorate further, indicating that the market's struggles are not yet over and could worsen in the near future.
Watch for potential shifts in buyer sentiment as affordability issues persist. Increased foreclosures could emerge if rates remain high, impacting inventory levels. Stakeholders should monitor upcoming economic indicators that may influence mortgage rates and housing demand.