VIDEO: Goldman Sachs claims four cities will suffer 2008-size home value crash

Sign up for DML's newsletter

If you want to see DML NEWS APP articles without ads, click here.

As the most reliable and balanced news aggregation service on the internet, DML News App offers the following information published by DAILYCALLER.COM:

The financial institution Goldman Sachs reportedly sent a note to clients in early January about four cities that it believes are likely to experience a 2008-size crash in the housing market.

The note, obtained by the New York Post, reportedly states that Phoenix and San Diego, as well as Austin, Texas and San Jose, California, will likely see a boom-and-bust crash in home prices of more than 25%. Interest rates have skyrocketed and home prices continue to drop nationally.

“This [national] decline should be small enough as to avoid broad mortgage credit stress, with a sharp increase in foreclosures nationwide seeming unlikely,” Goldman Sachs wrote, according to the New York Post. “That said, overheated housing markets in the Southwest and Pacific coast, such as San Jose MSA, Austin MSA, Phoenix MSA, and San Diego MSA will likely grapple with peak-to-trough declines of over 25%, presenting localized risk of higher delinquencies for mortgages originated in 2022 or late 2021.”

The strategist said, “Our 2023 revised forecast primarily reflects our view that interest rates will remain at elevated levels longer than currently priced in, with 10-year Treasury yields peaking in 2023 Q3. As a result, we are raising our forecast for the 30-year fixed mortgage rate to 6.5% for year-end 2023 (representing a 30 bp increase from our prior expectation).”

They added, “Assuming the economy remains on the path to a soft landing, avoiding a recession, and the 30-year fixed mortgage rate falls back to 6.15% by year-end 2024, home price growth will likely shift from depreciation to below-trend appreciation in 2024.”

Reporter Jasmine Ramirez tweeted Thursday, “Goldman Sachs is forecasting a 2008-sized crash in the #SanDiego housing market. I spoke with @RealtorsSD and @MattBattiata to hear their thoughts on the #housingmarket”

Reporter David Levitt tweeted Wednesday, “#SanDiego, #SanJose, #Austin, #Phoenix. Look for #GFC-like #realestate crashes in those markets, sez #GoldmanSachs. ‘The national decline should be small enough to avoid broad #mortgage stress’ #interestrates #TheFed #finance #CaseShiller via @nypost”

To get more information about this article, please visit DAILYCALLER.COM.

The Dennis Michael Lynch Podcast is available below. Never miss an episode. Subscribe to the show by downloading The DML News App or go to Apple Podcasts.


  1. Let them bust. Let houses in these markets become more affordable to those currently locked out. Stop using government intervention in the market to prop up values artificially.


Please enter your comment!
Please enter your name here