OFR, Report: Risk Spotlight, Risk from the Real Estate Market is Limited, but Changes in Occupancy and Prices May Increase the Risk
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“Neither the commercial real estate (CRE) nor the residential real estate market poses a significant risk to the U.S. financial system in the foreseeable future. The CRE market performed well throughout most of 2022, but it is now showing weakness. Home prices began to soften in 2022, in conjunction with the Federal Reserve’s interest rate increases. While these markets have been resilient until recently, their strength will be tested if a recession occurs.”