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Elon Musk warns house prices are set to plunge - and says commercial real estate is in meltdown

Elon Musk being photographed at a press event while wearing a white suit and black shirt.
Elon Musk.Charles Sykes/Invision/AP, File
  • Brace for the intense pressure on commercial real estate to spread to house prices, Elon Musk says.

  • "Commercial real estate is melting down fast. Home values next," the tech billionaire tweeted.

  • Investors are worried about real estate in a period of higher interest rates and tighter lending.

Elon Musk is once again ringing the alarm on the US real-estate sector.

"Commercial real estate is melting down fast. Home values next," the Tesla and SpaceX chief tweeted on Monday.

The tech billionaire made the comment in response to a tweet by the Craft Ventures founder David Sacks, who said that a big chunk of commercial real-estate debt was due to mature soon.

Musk has previously warned that cracks could appear in property markets following turmoil in the banking sector. For example, the clean-energy pioneer said commercial real estate was "by far the most serious looming issue," and cautioned regional banks could experience a wave of defaults because of their huge exposure to the sector.