North America’s Largest Woodworking Event | Tuesday–Friday | August 6–9, 2024

#IWFmorefor24

Industry & Trends

Goldman Sachs Forecasts High Home Prices & Mortgages for 2024

Despite some signs that interest rates may be leveling off and housing activity showing signs of life, the big investment banker says next year will still be a hard one for the building trade.

There are some indications from the Federal Reserve that interest rates may be topping out while small pockets of the new home construction sector are starting to bottom out but the big investment banking firm Goldman Sachs is forecasting 2024 will see little change from what the American economy has been dealing with for much of the past 18 to 24 months.

For home builders and others in the construction sector, the news is not encouraging even if Goldman is saying the backlog of multi-family units already under construction is starting to come down indicating some encouragement for the trade. It also says it sees strength in the rental market from those who are being priced out of the housing market.

In a new report on the overall housing market, Goldman said higher mortgage rates are “likely to remain elevated for the foreseeable future,” resulting in only 3.8 million existing home sales next year, a 25% drop from 2022. Those sales are expected to total 4.1 million this year, which is down from 5.1 million in 2022. 

The new housing market is also in for tough times in 2024, Goldman said: they are expecting a 4% drop to 1.34 million units next year, with much of that decline coming in multifamily construction.

The catalyst for all of this is of course mortgage rates and the lower percentages being paid by existing homeowners who are reluctant to give them up. It said that virtually all of the existing mortgage borrowers have interest rates below current market rates. Nearly nine out of ten have rates two percentage points below market, and almost two-thirds have rates four percentage points lower.

Goldman said it expects mortgage rates to remain elevated for the “foreseeable future,” declining slightly to just under 7% by the end of 2024.

BACK TO NEWS

More Industry & Trend News

  • Baltimore Bridge Collapse Could Impact Plywood and Veneer Shipments

    April 10, 2024

  • Home Depot Doubles Down on Pro Business

    April 10, 2024

  • Over Half of Homeowners Plan to Renovate in Next Five Years

    April 10, 2024

Register to Attend

Be part of North America’s largest woodworking show and conference.

Register Now

Apply to Exhibit

Grow your business at the premier global woodworking trade show.

Exhibit at IWF 2024

Show Hours & Location

International Woodworking Fair
Tuesday–Friday
August 6–9, 2024

Tuesday–Thursday
8:30 AM–5:00 PM
Friday
8:30 AM–2:00 PM

Georgia World Congress Center
285 Andrew Young International Blvd
Atlanta, GA 30313

Get Industry News & IWF Updates

Subscribe to IWF Network News.

Subscribe Now

Terms & Privacy Policy

© 2020 International Woodworking Fair, LLC Terms of Use & Privacy Policy

3520 Piedmont Rd NE #350, Atlanta GA 30305 | (404) 693-8333

IWF 2024 Add to Calendar

Sync IWF 2024 with your favorite calendar program.

Notification Message

loading … please wait