So much for us becoming a nation of renters.
Wall St sees what’s coming. pic.twitter.com/dpVLHTwXxt
— QE Infinity (@StealthQE4) August 7, 2023
Banks Want to Dump Property Loans
Goldman Sachs, JPMorgan Chase, and other lenders are facing challenges in selling commercial real estate debt due to rising concerns about the sector’s stability. The shift to remote work and job cuts have particularly impacted office property values, causing a market slowdown. While many banks are looking to offload such loans, possibly at discounts, actual distressed sales remain limited. The uncertain valuation of these assets has also led some lenders to stop issuing new commercial real estate loans altogether.
Median sales price for sold homes in the United States has dropped over 13% from Q4 ‘22 high of $479,500 to $416,100 as of end of Q2 pic.twitter.com/E2AqbA4IAw
— Win Smart, CFA (@WinfieldSmart) August 6, 2023
Price of Lumber and the NAHB Homebuilder Index have held a decent correlation – price of lumber getting clubbed again… NAHB index to follow? pic.twitter.com/zR8rRLeanD
— Don Johnson (@DonMiami3) August 7, 2023
Banker in Dallas:
We approved loans for $200k to $300k higher than we should have during the pandemic.
"So that folks could bid on houses up to $800k to $1M".
"Stretched the DTI limits all the time to 50%."
"It's a house of cards that'll fall when the economy shakes."
Yikes
— AKM (@akm515) August 6, 2023
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