NewsPour 5.31.23

News headlines include commercial lending declining, home prices falling in April, Elon Musk tweeting about the real estate market, and major problems for the Applesway Investment Group. The SelectFinCap partners discuss all of these news developments on our YouTube channel. 

Commercial Lending Falling

In March banks tightened loan standards according to the Federal Reserve, while Goldman Sachs reported CMBS loan issuance hit the lowest level since 2010. There was a reduction in debt leverage. For our discussion on the current state of the commercial real estate loan market watch here.

Home Prices Fall

After rising to record levels home prices are continuing to cool off. The median U.S. home sale price fell 4.1% in April–the biggest decline since January 2012. But is it a necessary market correction or something more more worrisome? For our discussion watch here.

Elon Musk Tweets on Real Estate

Elon Musk got a lot of attention for tweeting out that commercial real estate is in a meltdown. The SelectFinCap partners agree this was an entertaining tweet. But think the picture is a lot more complicated with some markets doing well, and some, like the San Francisco office market, in real trouble. You can watch here.

Applesway Investment Group; Lesson to Learn

In one of the biggest commercial real estate blowups in history the Applesway Investment Group lost more than 3,000 apartments to foreclosures. The SelectFinCap partners discuss the blowup and lessons to be learned, particularly the mistake of using adjustable rate loans when interest rates were low, focusing on volume rather than selectivity and a lack of professional experience in real estate financial modeling, operations and investing. Watch here.