Commercial lending is slowing down a bit (to normal levels), but overall the trend is still upwards. The painstakingly detailed article is on NREI Online.
Below is a reference to John B. Levy & Co., a real estate investment banking firm here based here in Richmond, VA. I like to see locally-based companies referenced in the national media, so kudos to John B. Levy!
Link: Lending is up — again.
Even if CMBS lending in 2006 fails to top 2005’s record performance, volumes remain staggeringly high, according to John B. Levy, principal of John B. Levy & Co., a real estate investment banking firm in Richmond, Va. “We’ve gotten used to such a Herculean growth spike that when it comes back down to just reasonable, it looks like a disappointment,” Levy says. “Maybe growth is leveling off, but it’s leveling off at an incredibly high number.”
The question then becomes, is lending overall at a high number, or just secured lending such as buying houses or using home equity? If the level of debt is the same, and the RE loans are added to it, it could be a negative for the overall health of the economy. If, however, loans are shifting to more and more secured loans, backed by real estate, then the overall health of america’s personal finance structure may be improving, even tho the overall debt numbers have not changed, or may have even increased.
It is amazing to read this and know that so much has traspired since this posting.