Search
 

US Prices Show Second Monthly Uptick

NEW YORK CITY-The report from Moody's and Real Estate Analytics cautions that two months of positive returns don't signal a trend just yet.

By Paul Bubny | Updated on February 22, 2010

NEW YORK CITY-Following more than a year of steady declines, the Moody’s/REAL All Property Type Aggregate Index announced Monday showed a 4.1% increase in commercial real estate prices for December 2009, marking two consecutive months of price gains. It was also the largest monthly increase in the history of the Commercial Property Price Indices prepared for Moody’s by Real Estate Analytics. However, the Moody’s/REAL report cautions that it’s too early to draw any long-term conclusions.

“Two months of positive returns and one month of higher transaction volume does not allow us to discern a trend just yet, particularly in light of the fact that year-end commercial real estate activity can distort the true condition of the markets,” according to the report. “We will need to see data from the first few months of 2010 to develop a clearer picture of where things stand.” Furthermore, the report notes that commercial prices are still off 40.8% from their peak.

The 716 repeat transactions recorded in December, totaling $9 billion, represented a 75% gain in count and a jump of more than 100% by dollar value from the prior month. While higher sales volume in and of itself can indicate that a market bottom may be approaching, the report points out that December often records a large upswing in volume, due to both buyers and sellers working to close deals by year’s end. “Last year was no exception, so we will have to wait for transaction volume data in coming months to determine if this represents a permanent turn in market activity,” according to the report.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.