Fairview Commerical Lending

We are in a new paradigm for real estate.  With talks of a recession getting louder, what does this mean for real estate.  In 2008/9 real estate was radically different than today.  Companies like VRBO and Airbnb were not even around.  How will the next recession be different for real estate? How will nightly rental properties perform?  What will happen if a recession comes to fruition?   What happens to the hospitality sector during a recession? The negative impacts of economic recession on lodging firms have been well documented. During the 1990-1991 recession, the hotel room occupancy in the U.S.…

The federal reserve bank of NY recently published a report showing consumer debt jumping to the highest levels ever recorded with every category growing from mortgages, autos, credit cards, lines of credit, etc…  Is some consumer debt better/worse than others for the economy and real estate? What does the huge increase in consumer debt mean for real estate sales volumes and in turn prices?  What does this mean for interest rates? What was in the data on consumer debt from the federal reserve bank? Total household debt rose $312 billion, or 2 percent, in the second quarter of 2022 to…

The prevailing theory is that this real estate cycle will be considerably better than others as so many people locked in rock bottom rates which will serve as “golden handcuffs” and prevent a meaningful increase in inventory.  How accurate is this theory?  What is the recent data showing us (hint; look at the chart above).  How will the golden handcuffs impact real estate inventory and in turn prices?   Will Golden Handcuffs hold back inventory? What does the data on Austin, TX show us? Austin, one of the hottest pandemic markets, shows that the “lock-in effect” of golden handcuffs may…