Safe as Houses Again, or the Next Big Crisis?
Across the world, the same issues arise; bringing down house prices is arguably essential to controlling inflation, but taken too far, they can cause a crisis.
Here’s a tour of the problem, which is bigger than the just the US or single-family homes.
S&P CoreLogic Case-Shiller, which tracks the value of single-family housing within the United States. The index (white line) has slipped around 20% from its highest level ever in June 2022, marking a housing slump that has stretched for the fifth straight month.
Kim Wallace of 22V Research wrote the Fed isn’t “changing course until goods disinflation also hits services, especially housing.”
the European Central Bank’s equivalent lending-officer surveys have revealed an even sharper fall.
Next: Commercial Property?
John Authers Bloomberg 10 februari 2023
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