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Market Updates

Market News Update: Is the Party Over for Real Estate’s Recent Growth? Declines in the Apartment Sector Prompt Speculation

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futureFrom Jason Payne, Market News Analyst …

Earlier this week, Moody’s Investors Service reported that U.S. apartment prices decreased 0.2% in September – the first monthly decline in nearly four years.

Although the apartment prices in major markets increased by 1.3%, the group’s overall regression was primarily driven by a 1.1% dip amongst multifamily assets located in smaller cities, according to the ratings company.

Meanwhile, the broader Moody’s/RCA Commercial Property Price index revealed that values for all commercial property types continued their upward march in September, increasing by an average of 1.8% for the month.  (This gauge of general commercial real estate prices has now climbed 47.2% over the last four years, after bottoming in 2009.)

So, what gives?

Why did the resilient apartment sector underperform most of its peer groups in September?

Was this development a statistical fluke?  Or does it imply something more meaningful for…


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