Third Quarter Bank Earnings Reports Clear Up Picture of Commercial Real Estate Conditions
• For major banks, the recession is receding further and further away in the rearview mirror.
• Provisions for loan losses are falling, which means banks have more money available to lend.
• The disposition values of foreclosed assets are increasing, so banks plan to make more property available for sale.
• Many banks have cleared through their distressed assets and are ready to start growing again.
• They see demand in the marketplace increasing.
• There is pressure on pricing as competition for loans heats up.
• However, lenders view CRE as still inherently risky, but federal banking policies are mitigating the risks, and,
• Conditions will continue to get better, as long as we don’t go over the ‘fiscal cliff.’
We’ll take you through each point and tell you who said what.