Delinquencies in the Commercial Real Estate Market Reaches Another High

 

In the April 2010 report just released by Realpoint Research we learn that delinquencies are up 268% from just one year ago. These delinquent payments now total $51.05 Billion and was $47.82 Billion just one month prior.

This of course is a disturbing trend, and it reveals just how bad the underlying commercial real estate mortgage market is. The distressed 90+ day foreclosure and REO categories grew in aggregate for the 27th straight month, up 7% from the previous month.

Additionally:

The total unpaid balance for CMBS pools reviewed by Realpoint for the March 2010  remittance was $798.22 billion, up slightly from $797.06 billion in February 2010. Both the delinquent unpaid balance and delinquency percentage over the trailing twelve months are shown in Charts 1 and 2, clearly trending upward. The resultant delinquency ratio for March 2010 of 6.4% (up from the 6% reported one month prior) is nearly four times the 1.66% reported one-year prior in March 2009 and over 22 times the Realpoint recorded low point of 0.283% from June 2007. The increase in both delinquent unpaid balance and percentage reflects a steady increase from historic lows in mid-2007.

There is much more in the April 2010 report from Realpoint Research.

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