By Bob White 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.
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