Light at the end of the Tunnel (and it’s not another train)
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Q2 2010 Commercial Mortgage Originations Up 35 Percent from Q1 But Flat From Last Year
Any increase in liquidity after the frozen first quarter is good news. Granted, very few property owners want to sell voluntarily in this pummeled market. But at least we are seeing some funds available. The Quarterly survey of Commercial/Multifamily Mortgage Bankers Originations found some promising news in a 35 percent increase in commercial real lending volume from the first quarter.
Comparing the second quarter of 2010 to the same period in 2009 found:
- - 183 percent increase in loans for industrial properties
- - 180 percent increase in loans for office properties
- - 18 percent increase for hotel properties
- - 76 percent decrease in loans for health care (one must question if the passage of the National Health Plan is now driving capital away from this sector)
- - 25 percent decrease in multifamily properties
- - 9 percent decrease in retail properties
Sources of the Loans Change:
- - 173 percent increase in CMBS and conduits (but since there was almost none last year, any increase is a big percentage)
- - 143 percent increase in life insurance companies
- - 12 percent decrease in commercial banks
- - 55 percent decline in GSE-sourced funds
To download the complete report from the Mortgage Bankers Association click here.