BREAKING 🚨: St. Louis Commercial Real Estate
The Former AT&T Building in St. Louis just sold for $3.6 million. In 2006, it sold for $205 million. A total loss of more than 98%. Source: Barchart
Price cuts in Florida just surged up to the highest level
In http://Realtor.com's data set: 30.1% of all house listings had a price reduction in March 2024. Indicating substantial "selling pressure". Source: Nick Gerli, Re.venture
BREAKING: US new home prices are now down 20% from their highs, in bear market territory, and falling faster than rates seen in 2008, according to Reventure.
New home prices peaked in late-2022 at $497,000 and have fallen to $401,000 as of the latest data. In the financial crisis, new home prices dropped by 23% from 2007-2010, according to Reventure. US Home prices are down roughly the same amount in just 1.5 years, or half the amount of time. Still, new home prices are ~20% above pre-pandemic levels and existing home supply is near record lows. Is the hashtag#us housing market beginning to crack? Source: The Kobeissi Letter, Re-venture
China scrutinizes PwC role in $78 billion Evergrande fraud case
Chinese authorities are examining the role of PWC in China Evergrande Group’s accounting practices after the developer was accused of a $78 billion fraud, ramping up pressure on the global accounting giant that audited a slew of developers before the sector’s meltdown.
Source: Bloomberg
Major U.S. Banks, by Commercial Real Estate Exposure
This graphic shows the 20 largest U.S. banks by assets, and their exposure to commercial real estate as a percentage of total loans. source : visualcapitalist
House prices adjusted for inflation since 1975.
The charts for Canada, Australia, New Zealand, and the UK look like a s**tcoin during a pump. The Japanese real estate bubble of the 1990s is barely visible as a comparison... Source: Bloomberg, MacroAlf
Median home prices are now contracting at levels NEVER seen in 60 years
Source: Win Smart
What is the exposure of German banks to us commercial real estate?
According to Moody's, Aareal Bank & Deutsche Pfandbriefbank have the largest exposure compared w/their capital levels. The shares of Deutsche Pfandbriefbank, which is the most shorted in Germany, have recently lost a quarter of their value. In case of Deutsche Bank, there is a gap between banks' exposure to US specialized lending and exposure to banks' US CRE book as DB engages to a material extent in other asset-based or project lending that would also qualify as specialised lending, according to Moody's. Source: Dekabank, HolgerZ
