Home prices will rise in 2023 as affordability crisis worsens, Goldman says

Goldman Sachs strategists no longer expect home prices to fall this year, and are instead forecasting an increase that could keep pressure on would-be buyers who are already grappling with steep mortgage rates.

In a note to clients this week, the Goldman analysts estimated that home prices will rise by 1.8% this year because of limited inventory and stronger-than-expected demand.

"Housing supply continues to tighten," they wrote. "On the existing home front, the inventory of homes available for sale remains historically low. New listings are being added at the lowest...