Monday, July 20, 2009

No Green Shoots For Moody's REAL Index

Whoever is buying stocks today sure ain't reading Moody's most recent REAL Commercial Property Price Index Report. Then again, robots aren't meant to read, they're paid to lead.

- CRE falls 7.6% in one month (May), on top of the 8.6% decrease for the previous month.

- Now -28.5% YOY and -34.8% from peak (October 2007).

- Transaction volume slows to its lowest level yet.

And this:

“This month also marks the first time that round-trip price-change returns on some properties have fallen below -40% per annum (that is, over the investment holding span between the buy and the sell dates). Two properties this month saw negative annual rates of return in the high 40s. One was an apartment property in southern Florida which was returned to the lender and sold thereafter to a third party. The other was an office building in Los Angeles owned by a company in financial distress, which contributed to the highly negative rate of return.”
- “In May, nearly 80% of all repeat sales transactions occurred in properties price less than $7.5 million, and there were no properties that sold for more than $100 million.”

hat tip Brad

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