Friday, August 14, 2009

SF Fed Branch Issues Report on Commercial Real Estate

The San Francisco Federal Reserve branch issued a new report on residential and commercial markets. The message is "There are some positive signs in housing markets, although pressures on homeowners will not abate for some time. CRE is further from a bottom than housing. Income property markets are starting to struggle from the weak economy, pressures on rents & steep value declines. The CMM model suggests rising loss rates over the next several years for longer-maturing loans, but also predicts loss rates should remain relatively moderate. Refinance risk of maturing CRE loans, on the other hand, remains high. Unless the economy and credit markets recover more quickly than expected, CRE credit losses on some of these loans could become significant."

I am including a link to the report for all to see.

No comments:

Post a Comment