Posted by: Daryl & Wendy Ashby | August 25, 2009

Hold that Development

Hold that Development

 Lenders are being picky about the projects they will finance, like never before. We likely hit the bottom of consumer confidence last Dec. with positive signals coming out of the US. The stock markets have begun to trade higher and fewer layoffs are reported. Even so, lenders want 40% cash in a project rather than the previous 15%. Developers are faced with delaying a project in hope lending restrictions will be lifted. They are forming partner-ships to increase individual equity. They are also downsizing projects and/or reducing the size of the units, making them more affordable. The Kettle Creek project near Goldstream is an example where detached homes offering 700 to 900 sq. ft. are available for a hair over $300,000.

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