Housing starts surge to a 1-1/2 year high

Collateral backing industrial commercial mortgage-backed securities recently hit a delinquency rate of 12.05%, a 22-year high,Standard & Poor’s Ratings Services said Monday.

The high delinquency rate in the segment generally tracks alongside the nation’s gross domestic product activity, which shrank for four quarters in a row during 2008 and 2009 before beginning a slow climb back up.

S&P noted that “the industrial segment is the only major CMBS property type for which delinquencies are currently at historical highs.”

S&P said based on studies of servicer-provided net operating income, more than 47% of CMBS industrial collateral has undergone some type of decline since its original issuance.

About $2.4 billion industrial loans are scheduled to mature next year, a factor that is expected to prevent improvement in the number of industrial delinquencies, S&P said.

“With industrial vacancy rates at historical highs and rents remaining stagnant or falling, we don’t expect much near-term improvement in NOI at the property level, and it could even decline for certain properties and markets,”

Press Release

With 2012 just around the corner, many local markets have enjoyed strong sales volumes combined with falling inventory levels so far this year. For the 12-month period spanning December 2010 through November 2011, Closed Sales in the Greater Lakes region were up 4.9 percent overall. The price range with the largest gain in sales was the $200,001 to $275,000 range, where they increased 9.1 percent.

The overall Median Sales Price was down 2.4 percent to $139,700. The property type with the smallest price decline was the Water Access/River segment, where prices decreased 1.8 percent to $157,200. The price range that tended to sell the quickest was the $150,000 and below range at 161 days; the price range that tended to sell the slowest was the $400,001 and above range at 255 days.

Market-wide, inventory levels were down 15.1 percent. The property type that lost the least inventory was the Water Access/River segment, where it decreased 6.2 percent. That amounts to 10.8 months supply for Non-Waterfront properties and 18.9 months supply for Privately-Owned Waterfront properties.  Click on the name below for the report.