The US housing market has softened a bit after years of soaring prices and frantic bidding wars, but there’s little reprieve for buyers trying to crack into the market. First-time buyers made up the smallest share of sales on record last year, at 26%, even as home values started to cool, according to the National
Prices of bonds backed by commercial mortgages have recently dropped to levels not seen since the early days of the pandemic, pointing to a growing economic threat stemming from office vacancies and rising interest rates. A small corner of the U.S. bond market, so-called commercial-mortgage-backed securities, or CMBS, have taken a beating for over a
You can listen here or watch on YouTube using the timestamps below: 00:00 Intro 08:01 Office Properties Could Decline by 50% Or More 15:25 Defaults WIll Lead To Forced Selling 20:03 Why Rising Interest Rates Has Imperiled Many Commercial Real Estate Deals 23:25 Regional Banks Are Curbing Lending After Fall of Silicon Valley Bank (SVB)
One of the biggest public pension plans in the US is preparing to write down the value of its $52bn real estate portfolio in the latest sign that higher interest rates and the recent turmoil in the banking sector are causing pain in the property sector. The $306bn California State Teachers’ Retirement System (Calstrs) has