"The real estate market is in for sharp correction with losses that could take a decade to recover from, strategist says" - Jennifer Sor, Business Insider, 04JUL2024
>"We start to see a trickle-effect… People are starting to get laid off as unemployment rises. People have burned through their savings and inflation is crazy higher," he said. "Eventually, people aren't going to be able to pay their mortgages."
>Meanwhile, the fallout in the commercial real estate sector could be more severes. The sector has over $900 billion in debt approaching maturity this year, Bloomberg reported, after which it will have to be refinanced at higher rates and with potentially lower property values.
>Still, most real estate veterans don't expect the residential housing market to crash. The US housing market is so short on inventory it could take at least three or four years for supply and demand to balance out.
https://archive.is/LOhoY
>"We start to see a trickle-effect… People are starting to get laid off as unemployment rises. People have burned through their savings and inflation is crazy higher," he said. "Eventually, people aren't going to be able to pay their mortgages."
>Meanwhile, the fallout in the commercial real estate sector could be more severes. The sector has over $900 billion in debt approaching maturity this year, Bloomberg reported, after which it will have to be refinanced at higher rates and with potentially lower property values.
>Still, most real estate veterans don't expect the residential housing market to crash. The US housing market is so short on inventory it could take at least three or four years for supply and demand to balance out.
https://archive.is/LOhoY
🤡1