Connect with us

Published

on

close video Ara Hovnanian: Housing market normalizing despite supply shortage

Hovnanian Enterprises chairman and CEO Ara Hovnanian discusses the state of home builders and if the housing market hit bottom on ‘The Claman Countdown.’

Goldman Sachs expects home values to worsen through 2023 amid continued skyrocketing interest rates and declining housing prices.

The firm wrote to clients earlier this month that it predicts four U.S. cities will suffer the most catastrophic dips, drawing comparisons to the 2008 housing crash.

San Jose, California; San Diego, California; Austin, Texas; and Phoenix, Arizona, will likely see noticeable increases before drastic decreases of more than 25%.

These declines would be similar to those witnessed during the Great Recession in 2008. Home prices across the U.S. fell around 27% at the time, according to the S&P CoreLogic Case-Shiller index.

GOLDMAN SACHS ANNOUNCES REDUCTION IN ASSET MANAGEMENT INVESTMENTS

Goldman Sachs expects home values to worsen through 2023 amid continued skyrocketing interest rates and declining housing prices. (Reuters Photos)

"Our 2023 revised forecast primarily reflects our view that interest rates will remain at elevated levels longer than currently priced in, with 10-year Treasury yields peaking in 2023 Q3," Goldman Sachs strategists wrote, according to the New York Post. "As a result, we are raising our forecast for the 30-year fixed mortgage rate to 6.5% for year-end 2023 (representing a 30 bp increase from our prior expectation)."

In 2022, mortgage rates jumped from 3% to 6%.

"This [national] decline should be small enough as to avoid broad mortgage credit stress, with a sharp increase in foreclosures nationwide seeming unlikely," Goldman Sachs wrote. "That said, overheated housing markets in the Southwest and Pacific coast, such as San Jose MSA, Austin MSA, Phoenix MSA, and San Diego MSA will likely grapple with peak-to-trough declines of over 25%, presenting localized risk of higher delinquencies for mortgages originated in 2022 or late 2021."

San Jose, California; San Diego, California; Austin, Texas; and Phoenix, Arizona (pictured), will likely see noticeable increases before drastic decreases of more than 25%. (iStock / iStock)

The bank says these cities will suffer the lowest prices this year because they became too detached from fundamentals during the COVID-19 pandemic housing boom.

Goldman Sachs also forecasts that many Northeastern, Southeastern, and Midwestern markets could see milder corrections.

Home prices are expected to dip slightly in New York City (-0.3%) and Chicago (-1.8%), while Baltimore (+0.5%) and Miami (+0.8%) will see higher prices, the firm said.

FEDERAL RESERVE INVESTIGATING GOLDMAN SACHS' CONSUMER BUSINESS

Home prices are expected to dip slightly in New York City and Chicago while Baltimore and Miami (pictured) will see higher prices. (iStock / iStock)

GET FOX BUSINESS ON THE GO BY CLICKING HERE

"Assuming the economy remains on the path to a soft landing, avoiding a recession, and the 30-year fixed mortgage rate falls back to 6.15% by year-end 2024, home price growth will likely shift from depreciation to below-trend appreciation in 2024," Goldman Sachs wrote.

The average 30-year fixed mortgage rate was at 7.37% at its peak in November.

Continue Reading

Entertainment

The Wanted star Max George recalls moment he wrote will from hospital bed before heart surgery

Published

on

By

The Wanted star Max George recalls moment he wrote will from hospital bed before heart surgery

The Wanted star Max George has told of the moment he wrote his will from a hospital bed, as he was convinced he “was going to die”.

In December, George revealed he had to undergo urgent heart surgery after being diagnosed with a block.

In an interview with The Sun, his first since he underwent the lifesaving surgery, the 36-year-old described the moment when he thought he would die.

He said: “If I could go from being absolutely on top of the world to being told ‘the bottom part of your heart isn’t working’, I kept thinking in my head, ‘Well, what if the top half stops working overnight?'”

“That first night I wrote a will, I thought I was going to die,” the 36-year-old musician added.

On the night of 13 December, George said his heart rate and blood pressure dropped, “I felt like I was dying,” he said.

He had a pacemaker fitted by doctors during the surgery, but the former Strictly Come Dancing star said he made a will on his phone fearing the worst.

More on The Wanted

Before the surgery, George said his thoughts turned to his partner, British actress Maisie Smith, and his family who he feared he’d leave behind.

He shared updates on social media throughout the process.

While the procedure was complicated by collapsed veins caused by the condition, the surgery was successful and he returned home before Christmas.

He described his pacemaker as “the best Christmas present”.

Read more from Sky News:
Katie Piper reveals artificial eye decision
Soul Man singer Sam Moore dies
Angelina Jolie on legacy, family and new film
Boris Johnson brands Putin a ‘f****** idiot’

Tom Parker, who also rose to fame in the 2010s with the boy band along with George, died at the age of 33 after being diagnosed with an inoperable brain tumour.

Continue Reading

Entertainment

Former Little Mix star Jesy Nelson announces pregnancy – and it’s twins

Published

on

By

Former Little Mix star Jesy Nelson announces pregnancy - and it's twins

Former Little Mix star Jesy Nelson has announced she is pregnant with twins.

The singer, 33, said she was “eating for three now” on her Instagram alongside a polaroid picture of her with Zion Foster, with whom she was reported to have split up last year.

Nelson shared the touching post on Sunday, letting the world know she is set to become a mum for the first time – including two baby emojis next to her message.

The cosy picture shows the pair smiling in a kitchen.

Nelson rose to fame with the girl band Little Mix, which formed on The X Factor in 2011 and earned a string of UK number-one singles.

However, she left in December 2020 after nine years, saying the pressures of being in the group had taken a toll on her mental health.

Read more:
Little Mix ‘went to therapy’ after star’s ‘traumatic’ exit

Nelson has since performed as a solo artist but still had praise for her former bandmates, telling The Graham Norton Show in 2021: “To me they are still the sickest girl band in the world.”

Little Mix continued as a trio after Nelson’s departure in December 2020 before going on hiatus in 2022.

Continue Reading

Entertainment

Duchess of Sussex delays release of Netflix series due to LA fires

Published

on

By

Duchess of Sussex delays release of Netflix series due to LA fires

The Duchess of Sussex has delayed the release of her new Netflix series due to the devastation caused by the wildfires in LA, the streaming platform has announced.

Meghan’s eight-part series, With Love, will premiere on 4 March instead of 15 January.

“I’m thankful to my partners at Netflix for supporting me in delaying the launch, as we focus on the needs of those impacted by the wildfires in my home state of California,” Meghan said in a statement to Tudum, the official companion site to Netflix.

Harry and Meghan comforted volunteers and handed out food to evacuees during a visit to Pasadena on Friday, where they met with the city’s mayor Victor Gordo and emergency workers tackling the Eaton Fire.

Prince Harry and Meghan Markle Volunteering in Pasadena on 11/01/25
Image:
Prince Harry and Meghan were seen comforting residents on Friday

Footage showed the duchess, wearing a blue “LA” baseball cap, and the prince hugging and consoling people who had fled to the Pasadena Convention Center.

Latest on LA fires

They were also seen speaking Doug Goodwin, whose home was destroyed in the wildfires, and also to Jose Andres, founder of World Central Kitchen (WCK) which has been helping feed the public and emergency crews.

Prince Harry and Meghan speak to Pasadena mayor Victor Gordo in Altadena, California. Pic: AP
Image:
Prince Harry and Meghan spoke to Doug Goodwin (centre right), whose home was destroyed and Pasadena mayor Victor Gordo (right) in Altadena, California. Pic: AP

A description of the Netflix series on Tudum’s website said: “Produced by Meghan, ‘With Love, Meghan’ blends practical how-to’s and candid conversation with friends, new and old.

“Meghan shares personal tips and tricks, embracing playfulness over perfection, and highlights how easy it can be to create beauty, even in the unexpected.

“She and her guests roll up their sleeves in the kitchen, the garden, and beyond, and invite you to do the same.”

More from Sky News:
Body found after search of landfill site
How AI could help IVF couples
Former Little Mix star having twins

The royals live in Montecito, near Santa Barbara, around 90 miles from Los Angeles.

They are understood to have donated supplies, including clothing and children’s items, to people affected by the disaster.

They released a statement on Thursday urging people to help those affected by the wildfires and to open their homes to those evacuated.

Continue Reading

Trending