Both Residential and Commercial transactions are increasing.
In this article, we discuss the increased number of transactions we are seeing. The first article focuses on how the lending climate has changed. The second article touches upon Buyers’ changing expectations and how the Lending model is evolving to meet the new expectations. The third contribution briefly comments on the improving economy and how this may impact the matter.
We represent both buyers and sellers, and have seen over a 40% increase in purchases from 2011, consisting of a mix of residential and commercial properties. This increase may be partially caused by our expanding business, but we believe that a substantial reason for the increase is the increased number of private mortgage closings we are handling.
We cannot say for sure what is causing this expansion, beyond the private deals. However, condominium purchases (residential and commercial) have increased recently. This may be purely related to availability, but based on the number of business start-ups we have been assisting with, it may also reflect an uptick in businesses and the overall economy.
Total dollar volume of real estate activity is up near 40%, as well.
Inexplicably, mortgage recording activity regionally is down about 30%, but total mortgage indebtedness only saw a 6% reduction. One factor in the reduced mortgage recording activity is a continued slowdown in the mortgage refinance market. A combination of homeowners taking advantage of historically low interest rates in recent years coupled with a previous uptick in interest rates has resulted in reduced mortgage refinance volume.
Foreclosure deeds are down about 20%, providing further support that the economy is improving.
Buyers should expect relatively lengthy mortgage processing periods, compared to historic timelines. While institutional lenders will, and should, always come first, Buyers should also look to private lenders if finding that institutional lenders are unable to meet their needs.