RCA Insights

RCA CPPI US Summary: Prices Jump 2.2% in May

By on July 5th, 2017

The US National All-Property Composite rose 2.2% in May, the largest monthly gain since the election and spike of interest rates last November, the latest RCA CPPITM summary report shows. In the first four months of 2017, the index was up twice, down twice, and ended April at the same level it was at the beginning of the year. Thus, May’s strong results are a signal that some positive momentum may be returning to the marketplace.

The uptick in price trends in May was evident across property sectors. The office sector saw the strongest gains, up 3.1% for the month, followed by apartment which was up 2.4%, reversing the pricing declines recorded in the prior three months.

While CPPI results in May are encouraging, one month is not a trend and the price increases could largely be a reflection of falling interest rates in April and May. Transaction volume in May was down 12% YOY, a continuation of a trend that has yet to see any reversal.

Download your copy of the RCA CPPI report here. To receive the RCA CPPI data file, click here. If you are an RCA client you can also access these reports and conduct your own CPPI analysis on the RCA website.

1707 CPPI main v3large-01

Bob White

Founder & President

Robert M. White, Jr. founded Real Capital Analytics Inc. in 2000 to bring greater transparency to the investment markets by providing real-time data of capital flows and prices of commercial properties. He is a noted authority on the real estate capital markets who is frequently cited in the press and has authored numerous articles for industry publications and the firm’s own Capital Trends publications.

Mr. White is a Counselor of Real Estate, a Fellow of the Royal Institution of Chartered Surveyors and a Fellow of the Homer Hoyt Institute. He serves on the board of directors for the Pension Real Estate Association and the advisory board for the Real Estate Research Institution. Before founding RCA, Mr. White spent 14 years in the real estate investment banking and brokerage industry. He is a graduate of the McIntire School of Commerce at the University of Virginia.