Since mid-2022, real estate prices in the United States have dropped by an average of 20%, compared to a total of 23% during the cataclysmic subprime crisis.
It was 23% at the time from 2007 to 2010, whereas we’re dealing with a 20% decline over 20 months now.
This would suggest that the collapse is far from over in the current cycle.
Struggling, US banks are resorting to offering discounted mortgages and even offering a first year at 1.99% interest, putting their balance sheets at risk as they necessarily borrow at higher rates.
When the US catches a cold, Europe sneezes: a real estate crisis plus a banking crisis: who can top that?
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