Commercial Real Estate Prices Rise
Commercial real estate prices rose 5% in July according to Moody's. Prices are up 1.2% from a year earlier.
Investors continued rushing into properties this summer believing that the economy has turned upward. As the economy now continues to roll over, the cost to finance properties will rise and demand will fall as fear enters back into the market.
We are far closer to a bottom than we were in 2008 (see chart below), but those investors who remain patient will be rewarded over the next 24 months.
Chart courtesy of Calculated Risk.
Investors continued rushing into properties this summer believing that the economy has turned upward. As the economy now continues to roll over, the cost to finance properties will rise and demand will fall as fear enters back into the market.
We are far closer to a bottom than we were in 2008 (see chart below), but those investors who remain patient will be rewarded over the next 24 months.
Chart courtesy of Calculated Risk.
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