by Calculated Risk on 7/23/2008 11:30:00 AM
Wednesday, July 23, 2008
On Construction Loan Delinquences
A few stats from the WSJ: Equal-Opportunity Crisis (hat tip Michael)
Foresight Analytics ... estimates that construction-loan delinquencies among all property types reached 9% in the quarter, up from 7.2% in the first quarter and 2.4% in the year-earlier period. ...Developers of malls, hotels, and offices are all going to get hurt.
Among loans to single-family-housing developers, an estimated 12% of the loans were at least 30 days past due, compared with 10.8% in the previous quarter and 3.1% a year earlier.
Matthew Anderson, partner at Foresight Analytics, says that an early read on the data shows the pain is spreading to nonresidential projects. He says the weakening economy has put pressure on developers of shopping malls ...