Forecasts for Housing Price Growth in the US: Goldman Sachs and Berkshire Hathaway Analysts Express Confidence in the Market

Goldman Sachs analysts have revised their forecasts for the US real estate market and now predict a slight increase in housing prices. In 2023, a price increase of 1.8% is expected, followed by a 3.5% increase in 2024. These forecasts assume that housing prices will remain relatively stable until the end of this year, and then start to rise in 2024.

Table of Goldman Sachs analysts’ forecasts for the US real estate market:

Year	Forecasted increase in housing prices (%)
2023	1.8
2024	3.5

The basis for these forecasts includes limited housing supply and strong demand for real estate. Housing supply remains limited as the number of homes available for sale on the secondary market is currently around 1 million, compared to closer to 2 million units before the pandemic. Demand for housing remains stronger than expected, and buyers have demonstrated behavior that reflects an unstable adaptation to higher mortgage rates.

In addition, Warren Buffett’s company Berkshire Hathaway has invested in three major US homebuilding companies, which could serve as an additional stimulus for investors in US residential real estate and indicate confidence in the market.

Goldman Sachs and Warren Buffett have expressed their faith in the US housing market. Goldman Sachs analysts have revised their forecast and now predict a slight increase in US housing prices, whereas previously they expected a decrease. This is due to limited housing supply and stronger-than-expected demand. Warren Buffett’s Berkshire Hathaway has invested in three major US homebuilding companies: DR Horton, Lennar, and NVR. This demonstrates Buffett’s trust in the US housing market and may encourage other investors to invest in the industry.

The overall forecast for the US real estate market reflects an expectation of rising housing prices in the coming years. This is due to limited housing supply and strong demand from buyers. The resumption of the upward trend in housing prices after a decline last year may indicate market stabilization and increased investor interest in real estate.

However, like any market, there are potential risks that could impact the forecasts. For example, changes in the country’s economic situation or mortgage rates could affect demand and housing prices. Additionally, housing supply may change over time, which could also affect prices.

Overall, Goldman Sachs’ forecasts and Berkshire Hathaway’s investment in homebuilding indicate a positive sentiment in the US real estate market. This may provide opportunities for investors and homebuyers and confirms trust in the market from leading financial institutions.