Commerical real estate for Office sector is a major bust. How does MF Housing fair in the next 12 months regarding foreclosures and other major debt concerns?
It appears that in many markets single family housing should be a solid investment. Do you see any concerns in particular residential markets that may be an opportunity to capitalize on?
As we all know contractors seem to be a pretty optimistic bunch. However, there are a lot of uncertainties in the economy (e.g. coming recession, path of future rate hikes, supply chain normalization, acute skilled labor shortage etc.). From your interactions, what do you think are keeping contractors awake? Are we looking at any potential weak spot in the horizon?
With capital on the sidelines, developers are gearing up for new projects in mass. As capital unfolds will construction pricing skyrocket? Will GCs be able to handle the mass influx of new projects?
Capital Expenditures and Building Factories seem to be a good leading indicator of if we are going to have a recession or not........... What are the trends telling you? Business people leaning in with real cash says a whole lot more about the future than a pollster asking for consumer sentiment.
I feel like all the infrastructure investment (Fed dollars) and Industrial Development is supercharging the construction industry...will high interest rates effect construction? Lower high construction costs?
I just read The implications of Unrealized Losses for Banks by the Fed Resv Bank of KC and am concerned about tighter credit during the year ahead. QE was supporting the valuation of fixed income assets in bank portfolios. Post QE that support is gone and valuations have dropped considerably. They mention that small and mid-size banks have more exposure to this than larger banks. I have read that the small and mid-size banks also have the larger exposure to CRE loans -- more unrealized losses in the portfolios of these small and mid-size banks. So a 2-part question – 1. Since these institutions have regulatory capital requirements, doesn't this mean less money available to lend during the year ahead for everyone, even very good credit risks? And 2 -- are businesses who believe they have been very solid credit risks exposed to having their credit lines trimmed or requests denied?
What are your thoughts on the MultiFamily Sector cooling off in 2023 as banks pull-back on lending and also asking Developers to show much higher returns to make proformas work? Is this pull-back we seeing due to the banking crisis caused by the fall-out of the SVB/Signature/1st Republic banks or are there other factors playing here?
In NJ and PA, we seem to be seeing less private projects out to bid - from hotel and casino work, to office buildings (though warehouses are going up everywhere). I spoke with someone yesterday who just put his building rehab project on hold due to the rise in interest rates. Where do you see private construction in the next year?
With personal spending & income keeping pace with inflation, are there other tools the Fed can use to tame inflation? While I don't want it, would an increase to taxes for a way to take more money out of the consumers' pockets - maybe use to pay down government debt?
Commerical real estate for Office sector is a major bust. How does MF Housing fair in the next 12 months regarding foreclosures and other major debt concerns?
It appears that in many markets single family housing should be a solid investment. Do you see any concerns in particular residential markets that may be an opportunity to capitalize on?
As we all know contractors seem to be a pretty optimistic bunch. However, there are a lot of uncertainties in the economy (e.g. coming recession, path of future rate hikes, supply chain normalization, acute skilled labor shortage etc.). From your interactions, what do you think are keeping contractors awake? Are we looking at any potential weak spot in the horizon?
With capital on the sidelines, developers are gearing up for new projects in mass. As capital unfolds will construction pricing skyrocket? Will GCs be able to handle the mass influx of new projects?
Capital Expenditures and Building Factories seem to be a good leading indicator of if we are going to have a recession or not........... What are the trends telling you? Business people leaning in with real cash says a whole lot more about the future than a pollster asking for consumer sentiment.
I feel like all the infrastructure investment (Fed dollars) and Industrial Development is supercharging the construction industry...will high interest rates effect construction? Lower high construction costs?
I just read The implications of Unrealized Losses for Banks by the Fed Resv Bank of KC and am concerned about tighter credit during the year ahead. QE was supporting the valuation of fixed income assets in bank portfolios. Post QE that support is gone and valuations have dropped considerably. They mention that small and mid-size banks have more exposure to this than larger banks. I have read that the small and mid-size banks also have the larger exposure to CRE loans -- more unrealized losses in the portfolios of these small and mid-size banks. So a 2-part question – 1. Since these institutions have regulatory capital requirements, doesn't this mean less money available to lend during the year ahead for everyone, even very good credit risks? And 2 -- are businesses who believe they have been very solid credit risks exposed to having their credit lines trimmed or requests denied?
What is the impact of the Debt ceiling Boondoggle passed last night by the house to the Construction Industry short and long term?
What are your thoughts on the MultiFamily Sector cooling off in 2023 as banks pull-back on lending and also asking Developers to show much higher returns to make proformas work? Is this pull-back we seeing due to the banking crisis caused by the fall-out of the SVB/Signature/1st Republic banks or are there other factors playing here?
How much would construction activity have to fall to reach labor equilibrium?
In NJ and PA, we seem to be seeing less private projects out to bid - from hotel and casino work, to office buildings (though warehouses are going up everywhere). I spoke with someone yesterday who just put his building rehab project on hold due to the rise in interest rates. Where do you see private construction in the next year?
With personal spending & income keeping pace with inflation, are there other tools the Fed can use to tame inflation? While I don't want it, would an increase to taxes for a way to take more money out of the consumers' pockets - maybe use to pay down government debt?
What's your opinion about Elon Musk Tesla stock?