Real Estate

Commercial real estate troubles are so pronounced that Goldman Sachs’ CEO says even a soft landing won’t prevent ‘pain’

Joining CNBC’s Squawk on the Street on Monday, Goldman Sachs CEO David Solomon stressed that the economy has proved to be “incredibly resilient,” which has surprised him. However, there’s a certain sector that he sees as a risk.

After being asked about a Financial Times article reporting a surge in commercial real estate loan delinquencies in Goldman Sachs’ portfolio, Solomon told CNBC that real estate is the “single largest asset class in the world.” And as the Federal Reserve aggressively raised interest rates in an attempt to lower inflation, it has significantly affected the commercial real estate sector.

“There’s no question that the real estate market, in particular commercial real estate, has come under pressure,” Solomon said.

Solomon said that his bank has a relatively small lending portfolio compared to other lenders, but it does hold a reasonable amount of equity investments in real estate.

“Real estate affects us,”

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Real Estate

Nesto predicts soft landing for economy, better for real estate

Growing demand for housing, rising immigration and limited supply will keep pushing home prices higher, says a Nesto report.

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Conditions might not get any better for buyers than they are currently this spring, a new report is suggesting, pointing to growing demand for homes, stabilizing interest rates and continued economic strength that will likely drive home prices higher by year’s end.

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