By Wyatt Avery on April 25th, 2019
Annual growth in U.S. property prices slowed in March to the most modest rate since 2011, the latest RCA CPPI summary report shows. The waning of annual price growth comes as the pace of commercial real estate dealmaking also slows. U.S. investment volume was down 11% in the first quarter of 2019 from a year earlier.
The US National All-Property Index rose 5.8% from a year ago and 0.4% from February. Apartment prices weren’t immune to the ebbing price growth, posting only a 0.4% increase in March. Prices grew 7.3% YOY – second only to the industrial sector – but apartment prices had been gaining close to 13% a year ago.
Industrial prices grew 8.0% from a year prior. Strong demand pushed acquisitions of individual industrial properties to a record level for any first quarter period in early 2019, as shown in the latest edition of US Capital Trends, also released this week. Retail prices posted a 1.9% YOY gain in March, the slowest growth among the property types and exactly in line with inflation.
The office sector rose 0.5% from February and 5.2% from a year ago. While suburban office price gains have weakened since last year, CBD office price growth has been picking up speed. CBD offices logged an uptick of 4.2% YOY.
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