The New York Post first obtained the memo from Goldman Sachs that said four U.S. cities, including Phoenix, could see a “seismic” crash like the 2008 Great Recession in the coming year.

While most experts, including Goldman Sachs, agree that the housing market is beginning to normalize after pandemic-driven demand, there is still a lot of uncertainty.

Arizona’s Family got the report which forecasted 2023 and 2024 housing prices to fall the most in the West, where many mortgage payments claim half or more of a monthly income.

Firm researchers say that households should experience higher incomes, outweighing any effects that high mortgage rates are having on the housing market.

“While higher mortgage rates weigh on affordability, we expect strong nominal income growth,” the report detailed.

“That crash in our market was driven a lot by practices of the lending institutes,” Arizona Realtors vice President Sindy Ready said.