- Higher interest rates and vacancies continue to drive delinquencies in the commercial real estate sector. The crisis in the CRE sector does not reflect the situation in the property sector as demand for CRE spaces shifts into demand for other types of property.
- The US housing market may not suffer from a significant devaluation given the low supply of residential properties. Relatively-stable house values may help US consumers to sustain their consumption level.
- Low housing supply may reverberate into the rental market, risking a rebound in rental prices that would strengthen the Fed’s hawkish signal
