📈 Goldman Sachs predicts home prices to rise 4.5% this year and 4.4% in 2025

[AJ Wong]

Here is an excellent article on housing market expectations on appreciation from one of the world's top investment banking firms Goldman Sachs: 

What are some of the big differences you’re seeing among US regions?

"Year to date, we’ve seen the strongest home price growth in three main areas. First is the Midwest, which by most estimates is the cheapest and most affordable part of the country. Cities like Cleveland and Chicago have done really well. Second is the Northeast. New York and Boston have had a really strong year. The third is California, especially San Diego. People assumed California would be the worst-performing state because the baseline level of affordability was so low. But California also has pretty onerous land-use regulations that limit supply, and there’s been a lot less financial distress than people were expecting, with one of the lowest loan-to-value ratios on outstanding mortgages in the country.

We have a model-driven forecast for home price appreciation in the top 381 metros in the country, and we have two very out-of-consensus views as a result. First, we think California home price appreciation will do very well over the next two years. Certain metros like San Jose could see up to 10% appreciation over the next 12 months."