U.S. commercial property price drop may signal bottom?
Editor’s Note: 34.8% drop quite a decline since 2007. The biggest item that needs to be looked at is the financing that will be available as more of these 25 year amortorized mortgages that are due in 10 years that will be hitting the market to refinance. If that is not available along with investors taking serious hits in the markets, there might not be the credit and money available to get these notes taken care of. In that case then we will see more defaults and further price declines.
News (Reuters):
U.S. commercial property prices plunged for a second straight month in May as distressed transactions weighed, but the pace of decline may signal a bottoming process, Moody’s Investors Service said on Monday.
Banks must turn the credit taps back on, and quickly
The credit crisis is squeezing the life out of small business. How do I know? Well I’m the chief executive of the National Association of Commercial Finance Brokers, and my members raise capital for job-creating entrepreneurs who do not have access to the money markets.
In the past 18 months I have seen the pool of available cash dwindle as the folly of our major lenders has been revealed in all its gory detail.