Price Index Suggests Declines Are Ebbing
Monday, August 24, 2009
Source: GlobeSt
GlobeSt reports: June saw a "mild" 1 percent decline in property values after two back-to-back months of 7 percent 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 percent drop in prices over the past two years, and a 33.9 percent 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.
The Moody’s/REAL indices are based on transaction data from Real Capital Analytics.
View the full article on GlobeSt: Price Index Suggests Declines Are Ebbing
Posted by: Matthew Stone