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Goldman Sachs, in a note obtained by the New York Post, predicted Phoenix; San Jose; San Diego; and Austin, Texas will see declines of more than 25%.
PHOENIX — Goldman Sachs expects record drops in Phoenix home prices similar to the 2008 crash.
Phoenix has been at the forefront of a booming housing market for nearly a decade now. But nothing lasts forever, and that rapid growth could finally be tapering off.
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Goldman Sachs, in a note to clients earlier this month obtained by the New York Post, predicted Phoenix, San Diego, San Jose, California, and Austin, Texas will see declines of more than 25%.
That prediction is similar to the 2008 recession where home prices fell roughly 27%. Right now, the median selling price for homes in Maricopa County is about $477,000, a nearly 18% increase in the last year.
At those prices, many buyers have been looking for alternatives, especially as some neighborhoods see nearly a 90% increase in the number of rental units.
Phoenix headed a skyrocketing housing market, but if Goldman Sachs predictions play out, it could be at the front of the fall.
>> VERSIÓN EN ESPAÑOL: Expertos predicen que el mercado inmobiliario podría venirse abajo a niveles del 2008
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