Building projects see more bad debt
Saturday, January 12, 2008The boom-bust cycle is affecting business and residential real estate, said George Karvel, a real estate professor at the University of St. Thomas. 'Our ability to forecast demand is so poor that we tend to facilitate overbuilding by making too many loans,' Karvel said. As real estate values plummet, banks may end up getting paid dimes on the dollar for some of their commercial real estate loans, he said.
Originally published: 01/12/2008, Star Tribune