Ian Sheberson, chief economist in Nathion Macro Economics in a new research note, expected that home prices in the United States of America fall between 15% to 20% during the next year.
The memo claims that this decrease will aid in bringing the pricing rate back to the level it was at prior to the Corona outbreak catastrophe.
The memorandum indicated that Sheberdson, the company’s chief economist in the company, is expected to continue to decline in American homes until the beginning of next year, in light of the rise in mortgage rates near 7%, in addition to the decline in demand for borrowing to buy these houses.
The United States’ existing house sales have fallen for eight consecutive months, marking the longest landing wave since 2007.
He emphasized that despite the recent landing, property values had not reached their lowest point. He emphasized that the current cumulative fall in US house sales from the high seen in January of last year is 27%.
It is noteworthy that Jeremy Siegel is a professor of finance at the Warton College of American Business, a few days ago that the prices of homes in the United States would head to the second largest decline since World War II, as the Federal Reserve continues to raise interest rates.
It is likely that the prices of homes in the United States will decline by up to 15%, with the rise of mortgage rates strongly, in conjunction with the increase in interest by the Federal Reserve.
In the United States, the 30-year mortgage rate has risen to almost 7%, which is the highest level since 2007.
Pantheon Macro Economics predicts a 20% decline in US home prices.
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