Home prices to climb another 16% by the end of 2022, according to Goldman Sachs

INCLUDING ALABAMA THE HOUSING MARKET IN THE BIRMINGHAM AREA IS MIGHTY HOT IF YOU’RE LOOKING TO SELL REALTORS SAY WLELO G FOR IT. BUT AS WVTM13 SHERI FALK TELLS US ONCE YOUET G THAT GOOD OFFER FINDING YOUR NEXT HOME EVEN A SHORT-TERM RENTAL IS GOING TO BE A CHALLENGE. THIS ONE ALREA HDYAS THREE OFFERS FIRST DAY ON THE MARKET IF YOU’RE LOOKING TO BUY AEW N HOME LONGTIME REALTOR, RENEE HAMILTON SAYS GOOD LUCK LOW INVENTORY AND HIGH DEMAND ARE CREATING SOME UNUSUAL SITUATIONS FOR REALTORS AND THEIR CLIENTS. SITARTED MY CAREER IN THE DOWNTURNING MARKET OF ’09 AND I THOUGHTOT NHING WOULD BE AS CRAZY AS THAT MARKET BUT THIS RESULY SURPASSES THAT IN A POSITIVE WAY, BUT IT REALLY IS CHTICAO AND HECTIC LOW INTEREST RATES COUPLED WITH A LOT OF CASH BUYERSRE A KEEPING THE MARKET EXTREMELY COMPETITIVE CREATING BIDDING WARS WELL OVER ASKING PRICES, WHICH IS GREAT FOR SELLERS, BUT I REALLY LOOK AT THEM VERY SERIOUSLY AND SAY WHEN YOUR HOUSE SELLS IN ONE YDA AND THEY GIVE YOU FULL ASK OR OVER. WHERE ARE YOU MOVING IF WE HAVEN’T FOUND YOUR NEXT HOME SINGLE-FAMILY RENTAL HOMES TOWNHOUSES AND APARTMENTS ARE ALL HARD TO COME BY THESE DAYS TOO, ESPECIALLY FOR THOSE NOT LOOKING TO PAY A PREMIUM PRICE. IT’S TEMPORARY AND YOU MAY BE IN THAT SHORT-TERM APARTMENT. YOU MAY BE IN YROU IN-LAWS UPSTAIRS. YOU MAY BE IN THAT FRIEND’S BASEMENT. BUT IF IT’S GETTING YOU TO THE NEXT MOVE THAT YOU REALLY WANT RFO YOURSELF AND YROU FAMILY THEN IT’S TYPICALLY WORTH IT BOBY THIS PRESIDENT AND CEO OF ARC REALTY. HOOVER SAYS WHEN YOU ARE FINALLY BUNGYI THAT NEW HOME, DON’T FOREGO AN APPRAISAL OR INSPECTION SOMETHING HE’S SEEING MORE OF BECAUSE OF THE MARKET FRENZY. WE ALWAYS RECOMMEND ATTH SO GETTING THE INSPECTION BECAUSE ALABAMA STATE AND ONCE YOU CLOSE YOU GET ALL THE GOOD AND YOU GET ALL THE BAD WITH THAT BOTTOM LINE. IT’S A VERY GOOD. TO BUY OR SELL JUST MAKE SURE THAT YOU SEEK OUT THE RIGHT PROFESSIONAL TO HELP NAVIGATE YOU THROUGH IT ALL IT APPEARS THAT INTEREST RATES ARE GOING TO REMAIN RELATIVELY LOW FOR THE FORESEE. ABLE JOB GROHWT FOR OUR CITY IS GOING TO BE THERE AND THOSE TWO ARE A PERFECT RECIPE FOR DEMAND OF MORE AND MORE HOUSING IF YOU’RE A SELLER. YOU’RE GOING TO MAKE PROBABLY MORE MONEY THAN YOU’RE EVER GOING TO MAKE ON YOUR HOME. AND IF YOU ARE READYND A YOU KNOW WHAT YOU WANT AS YOUR NEXT HOME, AND IT’S YOU’RE LOOKING FOR TTHA DREAM HOME. IT IS ABSOLUTELY WORTH IT TO PUT UP WITH THE HICCUPS IN HOOVER SHERI FALK WVTM 13 NEWS. JERRY SAYS ARC REALTY HOOVER HAS AN EXCLUSIVE PARTNERSHIP WITH A COMPANY CALLED ZAVI THAT WILL ACTUALLY BUY A SLEELR’S HOME FOR COMPETITIVE PRICE THEN ALLOW THEM TO STAY IN IT AS A TENANT WH

Since the pandemic began, demand among homebuyers has far exceeded the supply of available homes, causing real estate prices to skyrocket.But as high as prices are, they have yet to peak, according to a new report from Goldman Sachs.The investment bank projects that home prices -- already at record highs -- will grow another 16% by the end of 2022.Despite price increases of 20% over the past year, the analysts at Goldman Sachs suggest that homes remain "relatively affordable" thanks to historically low mortgage rates. But continued strong demand among buyers and ongoing low inventory will keep pushing prices even higher, according to the report.Sure, the inventory picture has improved a little since the spring, with more homes for sale and price growth moderating a bit. But Goldman's analysts say this supply and demand imbalance is expected to continue through next year.But it is questionable whether demand will remain as strong going forward, given the high prices. About two-thirds, 66%, of respondents to a University of Michigan survey on homebuyer sentiment said this is not a good time to buy a home, according to the report. That's the highest it has been since the early 1980s.But homeowners today remain "'reluctant bulls,' who still intend to buy despite thinking it's a bad time," Goldman's analysts wrote.The Goldman Sachs model looked at supply, demand, affordability, and home prices. It projects that strong demand and tight supply will gradually erode affordability and make homes so pricey that more people will drop out of the market. That reduced demand will ultimately allow for more inventory on the market and eventually, the supply-demand imbalance will ease. But not before prices jump another 16% by the end of next year.In addition to home prices continuing to move higher, rents will continue to rise as well, the analysts said, and regulatory efforts from the White House, Congress or individual states or municipalities to alleviate the housing shortage may not be enough.Political wills have been at odds over efforts that would relax zoning rules and other regulatory constraints that have slowed homebuilding for decades. That's in spite of economic research that shows such efforts would boost supply and lower home prices and rents, according to the report.Some successful efforts include California's recent abolition of single-family zoning in the state, which could mean that the 60,000 new single-family homes permitted in the state each year, could become thousands of additional units, the report noted.Nationally, the White House's plan to use housing funding from the reconciliation bill to increase affordable housing may not have the intended effects if many of the proposed housing grants and tax subsidies are cut."As a result, nationwide changes seem unlikely for now, and limited state and local changes are only a partial step toward relieving the housing shortage," the Goldman analysts wrote in the report.

Since the pandemic began, among homebuyers has far exceeded the supply of available homes, causing real estate .

But as high as prices are, they have yet to peak, according to a new report from Goldman Sachs.

The investment bank projects that home prices -- already at -- will grow another 16% by the end of 2022.

Despite over the past year, the analysts at Goldman Sachs suggest that homes remain "relatively affordable" thanks to . But continued strong demand among buyers and ongoing low inventory will keep pushing prices even higher, according to the report.

Sure, the inventory picture has the spring, with more homes for sale and price growth moderating a bit. But Goldman's analysts say this supply and demand imbalance is expected to continue through next year.

But it is questionable whether demand will remain as strong going forward, given the high prices. About two-thirds, 66%, of respondents to a University of Michigan survey on homebuyer sentiment said this is not a good time to buy a home, according to the report. That's the highest it has been since the early 1980s.

But homeowners today remain "'reluctant bulls,' who still intend to buy despite thinking it's a bad time," Goldman's analysts wrote.

The Goldman Sachs model looked at supply, demand, affordability, and home prices. It projects that strong demand and tight supply will gradually erode affordability and make homes so pricey that more people will . That reduced demand will ultimately allow for more inventory on the market and eventually, the supply-demand imbalance will ease. But not before prices jump another 16% by the end of next year.

In addition to home prices continuing to move higher, as well, the analysts said, and regulatory efforts from the White House, Congress or individual states or municipalities to alleviate the housing shortage may not be enough.

Political wills have been at odds over efforts that would relax zoning rules and other regulatory constraints that have slowed homebuilding for decades. That's in spite of economic research that shows such efforts would boost supply and lower home prices and rents, according to the report.

Some successful efforts include California's recent abolition of single-family zoning in the state, which could mean that the 60,000 new single-family homes permitted in the state each year, could become thousands of additional units, the report noted.

Nationally, the White House's plan to use housing funding from the to increase affordable housing may not have the intended effects if many of the proposed housing grants and tax subsidies are cut.

"As a result, nationwide changes seem unlikely for now, and limited state and local changes are only a partial step toward relieving the housing shortage," the Goldman analysts wrote in the report.

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