Latest CPPI Displays Continuity in Pricing Trends into First Quarter
Wednesday, March 23, 2011
Source: Globe St
Globe St reports: With the release of January’s Moody’s/REAL Commercial Property Price Index (CPPI), now available on Moody’s and Real Capital Analytics’ (RCA) websites, it has become clear that the bifurcation in pricing denoted clearly by the index over the course of 2010 has continued into the New Year. A recent article on GlobeSt.com regarding recent property pricing stated it plainly: “The topline result of the latest CPPI, released Tuesday, shows that the index declined by 1.2% overall in January, continuing a recent trend toward modest declines. Yet some markets, notably office in New York City and Washington, DC, have shown steady gains over the past several months, while prices for distressed properties help to pull down the average.”
Overall, the CPPI is down by 42.8% from its October 2007 peak, while the six-city trophy sub-index, based on repeat sales comparisons in New York City, Washington, DC, Los Angeles, San Francisco and Boston, is down by just 18.9% over the same period. Weighing on the index are sales out of distress, the sub-index for which is down by 53.9% from its peak back in 2007. According to RCA, there is no shortage of properties waiting to be factored into this sub-index in coming months, as the pool of outstanding distressed properties stood at $178.9 billion as of January 2010. While the flow of new distress is starting to ebb, outflows into the market are starting to rise as well.
View the full article on Globe St: Latest CPPI Displays Continuity in Pricing Trends into First Quarter
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Posted by: Nina Turner