We have updated our Privacy Policy and Terms of Use for Eurasia Group and its affiliates, including GZERO Media, to clarify the types of data we collect, how we collect it, how we use data and with whom we share data. By using our website you consent to our Terms and Conditions and Privacy Policy, including the transfer of your personal data to the United States from your country of residence, and our use of cookies described in our Cookie Policy.
{{ subpage.title }}
The next economic crisis Larry Summers is worried about
On GZERO World, Ian Bremmer and former US Treasury Secretary Larry Summers discuss the policy response to the recent banking crisis involving Silicon Valley Bank and the Biden administration's actions.
Summers rates the government's move to step in and guarantee depositors in SVP positively but expresses concern over the high cost of the SVB bailout.
He also worries about the real estate sector, particularly the office building sector and corporate lending to mid-size businesses.
Watch the GZERO World episode: The banking crisis, AI & Ukraine: Larry Summers weighs in
Episode 4: Is now the time to buy? Real estate dynamics in 2022
Listen: As the global pandemic surged in the US, so too did home sales and home prices. On the flip side of things, commercial real estate took a hit as workers increasingly worked from home. As interest rates rise, we look to see what markets are still hot, which are cooling, and what impact this important sector has on the larger economy.
The latest episode of Living Beyond Borders, a special podcast series from GZERO brought to you by Citi Private Bank, looks at the current state of real estate in the wake of a global pandemic, when tight supply and skyrocketing demand left many homebuyers in intense bidding wars, and companies worried about long-term leases on office space that sat idle while workers went remote. Moderated by Shari Friedman, Managing Director of Climate and Sustainability at Eurasia Group, this episode features Dan O'Donnell, Global Head of Alternative Investments at Citi Global Wealth, and Cassandra Spratt, Chief Operating Officer at Eurasia Group.

Dan O'Donnell
Global Head of Alternative Investments at Citi Global Wealth

Shari Friedman
Managing Director of Climate and Sustainability at Eurasia Group

Cassandra Spratt
Chief Operating Officer at Eurasia Group
What COVID-19 has meant for home sales & prices
Betty Liu, Executive Vice Chairman for NYSE Group, explains:
How has the housing market reacted to the COVID-19 pandemic?
So, as you can well imagine, when stay-at-home orders are put in place, the housing market just dried up. Sales fell dramatically. Existing home sales in the month of April dropped nearly 18%. However, home prices actually continue to still rise. The median price for an existing home in the United States was $286,000. That was a rise of 7.4% from April of 2019.
Why haven't we seen home prices drop due to all this economic uncertainty?
So, as I mentioned, demand fell sharply for houses, existing houses in the United States during this COVID pandemic. And you don't need an economics degree to know that when demand falls, that means prices drop as well. But that didn't happen this time around. And the reason is because supply also fell as well. So, that basically left the supply-demand relationship unchanged.