Business Specialties  Investment
CRE Prices Continue to Drop in May, Says Moody’s/REAL Index
Jul 23, 2009

As the economic uncertainty continues, real estate prices continue to fall. The Moody's/REAL National All Property Type Aggregate Index from Real Estate Analytics L.L.C. measured 125.04 for May, a decrease of 7.6 percent from the previous month. That represents the second largest one-month decline after April’s 8.6 percent drop. The index, which has captured price data through the end of May 2009, is now 28.5 percent lower than it was a year ago and 34.8 percent below the peak measured in October 2007.

“We cannot underestimate the enormity of what the data has represented in the past two months,” said Neal Elkin, president of REAL. “The fact that this month’s price decline is less than last month’s price decline might be seen as a positive sign in some circles. It could suggest that bottom in prices maybe starting to form, however, we need see higher transaction dollar and deal volume in order to draw a more would definitive conclusions.”

While Transaction volume in the overall market has fallen to its lowest level yet. There were 282 transactions capture by REAL in May and of those, 52 were qualified as repeat-sales transactions to be incorporated into the calculation of the index

 
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