Wellesley College economics professor Karl Case, co-founder of the S&P/Case-Shiller Home Price Index, says commercial real estate “absolutely” could be the next domino to fall.
“It’s not as big as residential,” he pointed out in an interview with Dan Mangru of Moneynews.
About 30 percent of U.S. loans are secured with residential real estate, compared to 13 percent for commercial real estate, Case points out.
But, “commercial real estate is quite volatile,” he says.
“I think there will be trouble in commercial real estate. I don’t think it will be nearly as big a problem for the economy to handle as residential real estate.”
Tags: economics, economy, loans, real estate
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