Focus Management Group: April Month in Review
Each month we post an overview article that covers our recent company articles, announcements, and insights. Below is for the month of April.
Did the Commercial Real Estate Market Respond to the Pandemic as Expected?
When the pandemic lockdowns occurred in March of 2020, working remotely, and ordering online became the new normal. These changes were expected to immediately and significantly change the commercial real estate market, with lenders and investors bracing for problems.
At that time, most lenders expected problems with downtown office space and retail/service space, but no one was sure how far reaching the commercial real estate problems would be and how long they would last.
Two years into the pandemic world, it is interesting to consider commercial real estate trends today. We take a look at these trends in the article below.
Escalating Inflationary Pressures: Expect Waves of Inflationary Impacts
The CPI and PPI for March 2022 have been released and both show continued increases in inflationary pressures. Businesses and lenders are challenged to deal with 2022 actual performance and 2022 forecasts in this complicated environment.
This article will discuss approaches to identify performance risk, and related impacts on loan covenant compliance. Give it a read below!
What is Happening to the Residential and Commercial Real Estate Markets?
The lenders and investors who are dealing with residential and commercial real estate markets are continuing to experience uncertainty. In this article we explore trends and statistics that are impacting residential real estate.
The rising interest rates and the continuing increases in listing prices have served to moderate the activity related to home sales. Price reductions have become more common as sellers react to the moderation in demand. But home sales activity is still higher than the recent years.
It is also important to remember that if there is another real estate bubble, which some experts say will happen in 2023, lenders may have another round of foreclosures and short sales to deal with. This may be a time to evaluate specific regions and their run up in value, compared to required down payments for home purchases.
Take a look at the metrics in the article!