Signs suggest that the U.S. economy is already in a recession – and may have been so for 10 to 12 months, according to Michael Eisenga, CEO of First American Properties. He warned that businesses and consumers should prepare for a challenging year ahead.
Eisenga cites many signs of economic distress. “The downward revision of key economic indicators, along with rising unemployment expectations and a dramatic pullback in CEO confidence, clearly point to a contracting economy,” he said in prepared comments.
He noted that the real estate market—both commercial and residential—is among the sectors most affected. CRE loans are becoming negatively leveraged because of falling property values coupled with high interest rates, expenses, and vacancies. The residential market is being hammered by high interest rates and downward price pressures, making it hard for buyers to get financing.
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