In a repeat sales property price analysis of the third quarter of 2024, Trepp found continued downward pressure on CRE prices. That happened to both equally weighted (balanced representation across property types) and value-weighted (greater emphasis on larger dollar transactions) indices. The analysis showed broad declines quarter-over-quarter and year-over-year.

The equally weighted index has declined 2.41% from its peak with a quarter-over-quarter decrease of 1.07%. The value-weighted index has dropped 12.57% from its peak, including a quarter-over-quarter decrease of 1.73%. This should be taken with some patience as the 50-basis-point cut in September and the subsequent additional pair of 25-basis-point cuts still haven’t had time to result in reduced loan rates, which could have an effect on pricing data.

The difference between the equally weighted and value-weighted indexes by property type is stark. Starting with the equally weighted, the composite change from the peak second quarter of 2022 to the third quarter of 2024 was -2.41%, with a year-over-year change of -2.20% and a quarter-to-quarter change of -1.07%.