The biggest mover was condo construction loans, for which thedelinquency rate spiked 400 basis points to 20.5%. Next in line wasresidential construction financing, the delinquency rate for whichrose 270 basis points to 15.1%. The delinquency rate for purecommercial construction loans increased 110 basis points to 5.2%while apartment construction loan delinquency increased 80 basispoints to 3.7%.
The total amount of construction loans outstanding shrunk by1.6% during the third quarter, up from a 0.9% decline in the secondquarter. Single family residential construction loan totalscontracted by 8% in the third quarter. Multifamily constructionloan totals shrunk by 2%, with shrinkage on the condo sideoffsetting moderate growth on the apartment side.
Non-residential commercial construction loan totals expanded by4% in the third quarter, which is down slightly from its secondquarter pace. Foresight Analytics principal Matt Anderson saysgiven the freeze in credit markets since mid-September, contractionis likely in the fourth quarter.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.