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Price Index Suggests Declines Are Ebbing

NEW YORK CITY-Sales volume for June improved over May tallies, Real Estate Analytics says in the Moody's/REAL report released Friday.

By Paul Bubny | Updated on August 24, 2009

NEW YORK CITY-June saw a “mild” 1% decline in property values after two back-to-back months of 7% drops, Real Estate Analytics said on Friday. At the same time, REAL reported that the month also represented an uptick in sales volume compared to May, possibly auguring a market bottom.

“This month is not unexpectedly bad news like the two previous months,” Neal Elkin, president of REAL, in a release accompanying the newest Moody’s/REAL National All Property Type Aggregate Index. “It could signal the beginning of a gradual tapering of the decline, the beginning of the final stage of the price correction from the lofty bubble of two years ago.”

Nonetheless, the June index of 123.82 represents a 35.5% drop in prices over the past two years, and a 33.9% decline below the peak measured in October 2007. According to REAL, properties purchased between 2005 and 2008 have now suffered price drops of more than 20%, with the declines largest for those purchased two years ago.

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