A very robust commercial real estate market ensued after the 2008 meltdown and rock-bottom interest rates. Buyers became comfortable buying assets supported by low interest rates, along with the idea that demand was still strong.
Buyers and sellers have now come to terms with the fact that the real estate market will not last forever. In their Western Real Estate Business article “The Real Estate Market Stalemate,” iBorrow CEO Brian Good and Investment Associate/Originator Will McCabe discuss the standoff between borrowers and lenders.
“Because lenders are anxious about what the future holds, they will lend at lower loan-to-value ratios and higher rates due to this anticipated and historical risk of a downturn,” said Good. “The question will be whether or not borrowers can stomach higher rates and access the equity required by lenders,” added McCabe.