An Insider’s Look Into How Secondary Marketing Evaluates LOs

In this webinar we’ll explore the long-term financial impacts of renegotiations, extensions and fallouts, plus basic guidelines to be viewed as a professional by your secondary marketing department

HousingWire Annual Virtual Summit

Did you miss out on HousingWire Annual? We have you covered! Join us virtually on October 25 for a chance to see hand picked sessions from our in-person HousingWire Annual in Frisco. Register now for FREE!

How brokers can help today’s unique borrower

The average borrower has drastically changed throughout the years. More borrowers are self-employed, work remotely and have multiple streams of income. Learn about the tools to assist any borrower quickly and effectively.

Experts on how AI makes a difference in the mortgage process

Today’s HousingWire Daily features a roundtable discussion on “Humans versus really smart machines” and what the right mix looks like to gain efficiencies in the mortgage loan manufacturing process.

Politics & MoneyReal Estate

Goldman Sachs: Home prices will rise another 16% in ’22

Investment bank doesn't foresee big boost in inventory anytime soon

Home prices are currently up 20% year-over-year, but according to a new Goldman Sachs market forecast, they may not have reached their peak yet. Not even close. Goldman Sachs economists predict that home prices will grow another 16% by the end of 2022.

The rapid increase in home prices over the past year is due to a number of colliding factors, including low interest rates, tight housing inventory, pandemic-induced migration patterns and an increase in millennials entering the home buying market. In addition, as fears of inflation increase, many investors are purchasing properties as a hard asset.

“The supply-demand picture that has been the basis for our call for a multi-year boom in home prices remains intact,” wrote a Goldman Sachs team of economists led by Jan Hatzius in a recent note, according to Yahoo! News, which first reported the story. “Housing inventories remain historically tight, and surveys of home buying intentions remain at healthy levels.”

Although inventory has slowly been increasing over the past few months, it is still below pre-pandemic levels, and the homebuilding industry has not been able to fill the void due to material and labor shortages. Construction employment is still 201,000 jobs below its February 2020 level, according to the U.S. Bureau of Labor Statistics.

A possible solution to the tight housing inventory and escalating home prices offered by Goldman Sachs economists is the relaxing of zoning laws.


Why today’s housing market makes speed and agility crucial for lenders

In light of the state of the housing market, learn why agility, speed and a better customer experience are more important than ever.

Presented by: Nomis Solutions

“Economic research shows that relaxing the zoning rules and other regulatory constraints that have impeded homebuilding for decades would boost supply and lower prices and rents. But in practice, this has been difficult politically,” the economists wrote.

One state attempting to using zoning to ameliorate housing issues is California, which recently banned single-family zoning throughout the state (with caveats), opening the door for more multi-family residences to be built. However, Goldman Sachs economists don’t believe that such changes will be widespread across the country.

While demand remains high, which could potentially bring prices to the levels predicted by Goldman Sachs, things are certainly cooling off in some markets, such as Manchester, NH, which was red-hot over the summer. According to local agents, many home buyers are becoming discouraged by the ever-increasing home prices, causing homes to sit on the market for a longer period of time, suggesting that further price increases may cause demand to drop off.

Leave a comment

Most Popular Articles

Fannie Mae: Mortgage rates and home prices will rise in ’22

Economists at Fannie Mae expect higher mortgage rates and home prices next year due to higher inflation, a tightening of monetary policy, and low home inventory

Oct 15, 2021 By

Latest Articles

What does it really mean to digitize the closing process?

ICE Mortgage Technology, a global provider of data, technology and market infrastructure, recently announced that Encompass eClose, its end-to-end eClose solution, is expanding its hybrid capabilities to now include full eNote and eVault functionality. In advance of that announcement, HousingWire Editor-in-Chief Sarah Wheeler had the opportunity to catch up with ICE Mortgage Technology President Joe Tyrrell to talk about what it actually means to digitize the closing process.

Oct 18, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please