Financial crisis hurting seniors housing market, NIC reports
Editors' Blog: Targeting Medicaid
Loan volume in the third quarter of 2008 reached $1.01 billion, continuing a slide of the last fiscal year and a half. It topped out at $2.28 billion in the first quarter of 2007, according to the NIC report. Loan performance, meanwhile, reached its lowest level sine 2005, falling to 98.9%. Further loan performance deterioration is predicted over the next 18 months, NIC president Robert Kramer said in a statement.
Also affected by the weak economy are capitalization rates, which are higher this year than last. Rates for skilled nursing are up to 12.75% in the third quarter of 2008, compared with 12% in 2007. Numbers for the assisted living market are also higher, rising from 8.5% to 9.2% from 2007 to 2008, according to NIC numbers.