Even in so-called “bad news” deals, the parties involved are beginning to conclude that the time is right to resolve the situation, she said, even if they’re not happy with the reason for transacting. “It might be a short sale where the property was underwater and the borrower wasn’t sure that they should go forward with a short sale,” she explained, “or the lender wasn’t sure if they should approve one because they weren’t sure that market conditions were such that they would be maximizing value [but] recognized that they weren’t going to get paid in full.”
The floodgates have hardly opened as far as transaction volume goes in the market overall, Brummer said – but market participants appear to feel “more comfortable” with pricing in the current landscape.
While certain smaller markets in the US may be seeing well-publicized oversupply in the multifamily space, that’s not the case in major metropolitan areas where there remains “huge appetite”, Brummer said, among many clients.
Lenders are showing strong interest in lending in multifamily construction, she added – “particularly in major urban markets where there are local tax schemes that reward developers for having a component of affordable housing or things like that.”
Melissa Tubau of Lock It Lending notes that many potential buyers are holding off, waiting for even lower rates, but warns that timing the market perfectly is nearly impossible and could lead to increased competition and higher home prices.Read more: https://t.co/4BO3di5oWk
— Mortgage Professional America Magazine (@MPAMagazineUS) September 4, 2024
What’s in store for the beleaguered office space?
The office market is often cited as the most problematic segment of the commercial real estate space, but while prospects for so-called Class B and Class C – average or functional – offices may be uncertain, the top-tier Class A buildings are likely to remain in demand, according to Brummer, moving forward.
