MBANow Video: Jamie Woodwell Discusses MBA’s Commercial Real Estate Forecast
MBA Vice President of Commercial Real Estate Research stopped by MBANow to discuss recent research releases and his preliminary CRE forecast for 2017.
Woodwell said nearly 2,800 lenders did a record $250 billion in multifamily lending in 2015.
“Some of the key drivers on the demand side include strong property fundamentals, improving property values and a strong transactions market,” Woodwell said, noting that 2015 property incomes were up 6 percent compared to 2014, property prices rose 17 percent year-over-year and property sales transactions jumped 34 percent. These factors drove a 28 percent increase in multifamily mortgage lending between 2014 and 2015.
On the supply side, Woodwell said banks, GSEs and life companies all saw “record” multifamily lending in 2015, “so that helped push the total up as well,” he said. “When we look at 2017 and 2018, we expect that the momentum we’ve got at the end of 2016 will continue.”
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