Magazine article Mortgage Banking

Real Estate Barometer Improves

Magazine article Mortgage Banking

Real Estate Barometer Improves

Article excerpt

Despite slowing economic growth over the last two quarters, more than three-fourths of key indicators in the Washington, D.C.--based Urban Land Institute's (ULI's) Real Estate Barometer report improved compared with a year ago.

"Apartment fundamentals are sizzling as rents and vacancy rates continued to improve, completions continued their U-shaped recovery and absorption doubled," said Anita Kramer, vice president of the ULI Center for Capital Markets and Real Estate, Washington, D.C. "Commercial property transactions dropped sharply in all but the office sector, where transactions were just slightly off; prices barely changed, remaining at three-year highs."

Kramer said monthly capitalization rates slipped to their lowest level since mid-2008 "as pricing remains aggressive; cap rates are only 30 basis points above their lowest recorded level since 2001."

Real Capital Analytics, New York, reported that cap rates fell 1 basis point in July to 6.84 percent.

Multifamily permits increased to their highest monthly level since September 2008, though multifamily starts paused," Kramer said, adding that the inventory of new single-family homes fell to its lowest point since record-keeping began in 1963. …

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