I send out a lot of loans to a lot of lenders. I have a really good read about how lenders are feeling at the moment about the market. By and large, over the last month or so, I have seen A HUGE SLOWDOWN in lender’s willingness to take on construction projects. Many of them are saying it is too late in the cycle to begin construction projects, or they have filled their pipelines and no longer want to add any more construction. It is not one sector or area of the country, it is pretty consistent nationwide.
Keep in mind, projects you see going up around you now got approved months ago or even a year ago. It takes time for a construction project to come to fruition. In most cases, you are looking at 3-5 years for completion and stabilization. I am hearing from many sources this time frame is just too far out to feel comfortable at this point in the cycle.