💸 Banking Collapse: CRE Chaos Looms
Empty offices, rising foreclosures, and bank collapses: What you need to know
Banking bigwigs are predicting a major crisis by 2025, with regional banks collapsing due to commercial real estate woes.
Office spaces are emptying thanks to remote work, and smaller banks are panicking.
And don’t forget commercial real estate, where delinquencies are skyrocketing.
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The housing market is also taking a beating, making even seasoned investors nervous.
Rising mortgage rates and inflation make it tough for many homeowners to keep up with payments, setting the stage for a potential housing crash.
Analysts warn that 2024 could see a significant market downturn if these trends continue.
In this edition of the AltReports:
😱 Bank Breakdown
🏃 Foreclosure Frenzy
🔻 Retail Recession
💸 Price Pause
🔄 Vacancy Vortex
Video of the Week: Phase 2 of the Commercial Real Estate Collapse Has Begun
Chart of the Week: Distress Rates Are Still Rising
Podcast of the Week: How to Prepare for a Recession as a Landlord
Bank Failure Warnings Have Real Estate Bracing for Impact
The big wigs like Barry Sternlicht and Howard Lutnick predict a banking apocalypse, with hundreds of regional banks set to collapse by 2025.
Who’s the culprit? Our old nemesis: commercial real estate distress.
Smaller banks are nervously extending loans like they're handing out band-aids for bullet wounds, praying for rate cuts that might never come.
Real-Estate Crash: Correction Looms for US Property Market
The housing market is having a meltdown that would make even the calmest investor break into a cold sweat.
Analysts predict a significant market downturn in 2024 if these factors keep piling up.
But there's a silver lining—housing inventory remains low, and buyer demand might cushion some of the blows.
CMBS Delinquencies for Office, Retail, Lodging Lead the Parade
Office, retail, and lodging sectors are in delinquency hell, with no bottom in sight.
It's a dumpster fire that just keeps getting fuel thrown on it, and everyone from investors to lenders is feeling the heat.
Retail is still reeling from the pandemic, with consumer behaviors forever changed and a ton of retail spaces left high and dry.
Home Prices Begin to Cool as Active Listings Jump 35%
For the four weeks ended June 23, the typical home sold for slightly less than its asking price.
Sellers are scrambling to cash in before the market takes a prolonged nap, making it a buffet of options for buyers.
With more inventory flooding the market, buyers are no longer facing the cutthroat competition that had them offering their firstborns just to seal a deal.
Contractions, Distress Dim D.C. Office Recovery Hopes
The D.C. office market is circling the drain faster than a goldfish in a flushed toilet.
Approximately half a million square feet of office space got dumped back on the market in Q2.
Major properties, even those in prime locations, are sitting empty, pushing landlords to rethink their strategies.