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re: credit bubble vs house prices

Posted on 5/9/24 at 8:18 pm to
Posted by Big Scrub TX
Member since Dec 2013
33577 posts
Posted on 5/9/24 at 8:18 pm to
quote:

Granted, it's not a massive drop but it's a drop happening as inflation is rising,
I mean, housing prices have come down modestly in a lot of areas, that's to be expected. And inflation has not been rising - it's been falling.

quote:

CREs though? CRE foreclosures began a stark rise last year. Full disclosure: CRE delinquency rates are still near historic lows but have been trending up for the last year and a half-ish and as the economy slows due to returning inflation growth (if that continues, and I have no reason to think it won't for at least the next couple of months) that is likely to continue (thus also pushing foreclosures up).
I'm not sure this has much to do with resi.

Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51790 posts
Posted on 5/10/24 at 6:14 am to
quote:

And inflation has not been rising - it's been falling.


No, inflation has gone up. PCE went from 2.5% in January and February to 2.7% in March. CPI has increased every month this year YoY and has been .3, .3 and .4 MoM.

Now if you're talking about just the Shelter category, fair enough. It's still ridiculously high though (5.6%) and I imagine it's even higher in the areas the OP is looking at.
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