In a blog commentary, Woodwell noted sales activity in the first quarter was down 56% year over year as delinquency rates rose and underwriting standards for commercial and multifamily mortgages continued to tighten.
Still, MBA anticipates borrowing and lending to bounce back in 2024 to $829 billion in total commercial real estate lending, with $456 billion of that total in multifamily lending.
“That slowdown is likely to persist through much of this year as investors, lenders, and others look for greater transparency into the markets,” Woodwell said. “We expect maturing loans to begin to break the logjam and provide greater clarity as this year goes on. However, it may take until 2025 for volumes to get back to previous years’ levels.”
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