Moody’s/REAL CPPI Index Down .5% in March
May 19, 2010
The Moody’s/REAL Commercial Property Price Index dropped .5% in March. This marks the second month in a row that prices have dropped after a few months of increases. The index is now 42.1% off the peak.
Despite the overall decline in the index, some positives were Apartments and Industrial in the top-10 MSAs. In the West however, prices were down about .2% across all sectors (office, industrial, and multi-family).
Full report embedded below, though not sure how long it will be up. Long story short: the increases registered a few months ago are now an afterthought. I suspect that a few more months of continued turbulence in the markets over the next few months will also bring back liquidity concerns and lead to further declines. We’ll see, but as I’ve repeatedly indicated, risk is back (it never really went anywhere) and investors will seek to get compensated for buying it.
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Tags: Commercial Property Price Index, Commercial Real Estate, CPPI, Moody's, Prices
Re-check your numbers…. the CPPI decline was 1/2% not 5%
thx fixed
i keep saying were going to bounce around the bottom for quite a while. this is going to take a while…
I fully agree, SF, and am glad that you're not on the bandwagon of a recovery. Housing prices reflect the same trend: up 2% yoy, but down 3.2% qoq. I think "bouncing along the bottom" is a very optimistic view at this point. I fully expect another 15%-20% correction in all RE once there's some true price discovery, which has not occurred due to hidden supply (by banks and federal govt) and ignoring loans in technical default (but current).