Delinquencies in California's commercial real estate market hit a 5-year low, in contrast to the residential market that is reeling with a record number of defaults.
In a quarterly report issued today by the California Mortgage Bankers Association, .03 percent of all loans were in foreclosure. The figure is the lowest since June 2002 when it dropped to .01 percent, and significantly below the 13 percent recorded in March.
The loan total included in the survey was $88.2 billion.
"Basically, it's the economy," said Peter Ulrich, a consultant for the state association and a retired mortgage banker. "If you follow vacancy rates in the various sectors, vacancies are down. That means the properties are performing well, the income stream is steady and it allows the owners to make their payments."