The nation‘s housing market is going through a correction, not a crash.
While sales are down and mortgage rates are up, home prices are still rising because there are so few homes for sale.
And after a decade of rising prices, commercial real estate values have been dropping steadily over the past 18 months, particularly for offices. It’s going to take two to nine years for building and warehouse values to get back to 2022 levels, creating some risk for banks holding real estate debt. Another 311 banks will likely fail in the near future — equivalent to three Silicon Valley Banks, but not enough to tank the banking system.
