Episode Details

On this week’s episode of the CRE Exchange podcast, Cole Perry and Omar Eltorai, both of Altus Group, cover the latest US economic print, including consumer signals from Costco, CarMax and Carnival’s earnings reports. Additionally, they discuss the current housing trends in San Francisco and the rest of the country. Lastly, they share some observations from the CREFC Capital Markets Conference which took place last week.



Key Takeaways:

(01:13) Core PCE inflation was up 3.9% year-over-year in August 2023, the smallest monthly increase since November 2020.

(02:29) Bank credit card delinquency rates are at the highest level in more than a decade.

(8:41) The FHFA House Price Index and the S&P Case-Shiller Home Price Index reached their respective highs in August 2023.

(12:42) Securitization markets are still functioning despite seeing a few down quarters.

(13:00) Banks are better capitalized and better positioned than they have been heading into historical down cycles. 

(14:02) Credit concerns will likely take time to work out, possibly years. 

(14:51) The FDIC is selling a large portion of the Signature Loan portfolio, which is heavily New York and multifamily.

(15:15) The San Francisco office market faces challenges, but the long-term outlook is positive. 

Resources Mentioned:

Cole Perry -

https://www.linkedin.com/in/coleperry1/

Omar Eltorai -

https://www.linkedin.com/in/omareltorai/

Altus Group -

https://www.linkedin.com/company/altus-group/

FHFA House Price Index -

https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index.aspx

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