By Jim Costello on March 8th, 2016
In January, the Moody’s/RCA CPPI recorded the first monthly decline in six years, falling 0.3% for the National All-Property Composite. One month is not a trend, but the slight decline in January follows flat results recorded in December and this is despite volume over this 60-day period reaching a record high. This is the first signal since the recovery from the Global Financial Crisis began that investors may not be willing to push prices higher, at least for now.
Seven of the 10 building-block indices recorded declines in January, causing price levels to fall by 0.8% for core commercial properties (offices, retail, industrial), while apartment prices rose by 0.7%. Visit the Real Capital Analytics website for full results of the CPPI.
In the next edition of our US Capital Trends we will have additional commentary on these pricing trends, some of the factors causing them and why they may represent the start of the second game in a doubleheader.