Magazine article Mortgage Banking

Property Prices Increase Thanks to Core Commercial

Magazine article Mortgage Banking

Property Prices Increase Thanks to Core Commercial

Article excerpt

* Property prices increased 1.2 percent in August as core commercial prices rose 1.7 percent and apartment community prices increased 10 basis points, according to Moody's Investors Service and Real Capital Analytics Inc. (RCA), both based in New York.

"Apartment price growth has begun to cool," said Tad Philipp, director of commercial real estate research with Moody's, adding that apartment community prices increased 0.8 percent between June and August.

Retail properties performed best, with a 4.2 percent price increase in August and a 9.6 percent increase between June and August.

"The national all-property composite has now recovered nearly two-thirds of its peak-to-trough loss," Philipp said. This metric has increased by 43.8 percent since December 2009 and now stands just 14 percent below its December 2007 peak.

Moody's reported that non-major market apartment community prices have outpaced major markets by growing 12.9 percent versus 10.2 percent over the last year. Many non-major apartment markets now exceed their pre-crisis peak--including Denver, which tops its previous peak by more than 26 percent. The Philadelphia/Baltimore; San Diego; and Dallas, Houston and Austin, Texas, areas also exceeded their previous peaks. …

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