With banks holding on to distressed real estate, and billions in special servicing and early CMBS maturities coming due, it could take years to rebalance assets through restructures or foreclosures. As a result, a massive amount of real estate will eventually flood the market—or trickle out through a prolonged period of economic stagnation.

Higher priced homes are selling, many without financing, and more foreclosures are being absorbed. In order to keep up with the growth in Texas, we once again will begin to see the need for new single family home developments.