Profits and Balance Sheet Developments at U.S. Commercial Banks in 2007
Figure 7. Change in commercial real estate loans, by major components, 1990-2007. Data plotted as curves. The annual change in construction and land development loans is about negative 7 percent in 1990; the change drops to about negative 25 percent in 1992, rises steadily to reach about 25 percent in 1999, and then is about 20 percent over the next two years. It drops to about 6 percent by 2002 and then rises steadily to about 35 percent in 2005, dropping to 27 percent in 2006 and finally dropping to about 12 percent in 2007. The annual change in multifamily residential loans is about 5 percent in 1990 and then moves in a range between about 5 percent and 15 percent through 1998. In 1999, it spikes to about 22 percent, falling to less about 6 percent in 2001, holding at around 10 percent through 2005, and dropping to about 4 percent in 2007. The annual change in nonfarm nonresidential loans is about 10 percent in 1990, falls to reach about 5 percent in 1991, rises gradually, on balance, to about 12 percent in 1999, slips lower to the neighborhood of 10 percent for the period from 2001 to 2006, and then reaches a value of about 6.5 percent in 2007.
Note: The data are annual.