California’s commercial market still on the up and up
Posted by Real Estate Blog
January 31st, 2008
Economy, Market
After a year of dismal news in the residential sector we are seeing that mortgage rates in the commercial sector are still holding steady, according to a report released today by the California Mortgage bankers Association.
Delinquencies have risen slightly over the year, however they are no where near as drastic as seen in the residential market. This is mainly because the amount of a commercial loan is generally two times the amount of a residential loan and the down payment required is quite a bit more.
Vacancies have also held steady over the past year. As long as the units are being leased, mortgage holders should be able to pay their monthly payment.
While this news is good for California’s commercial market, it is expected that eventually the downturn in the residential market will seep into the commercial market, however the impact will likely be no where near the monumental downturn that has recently taken place in the residential sector.
The commercial sector always sees a buffering affect, it’s inevitable though that eventually the troubles with the market will catch up on businesses as well.
Posted on March 8th, 2008 at 5:19 pm