Real Estate Prices Now 10% Higher Than Pre-Crisis (1 Viewer)

[cstu]

The national all-property index now stands 10% above its pre-crisis peak. All CPPI segments have

recovered at least 60% of their peak-to-trough loss.

The Moody’s/RCA CPPI measures price changes in US commercial real estate based on completed sales of

the same commercial properties over time, or the “repeat-sales”1 methodology. Below are the highlights of

this month’s report, which we base on transaction data through the end of April 2015. Exhibit 2 shows these

price changes broken out by sector and market type.

» The national all-property composite index increased by 1.6% in April, with prices now topping the 2007

pre-crisis peak by approximately 10%. Commercial property prices increased by 2.0%, while the smaller

apartment component increased by 0.5%.

» Apartment prices now exceed their pre-financial crisis peak level by 27.6%. Core commercial property

prices are approximately 4% above their pre-crisis peak level. The recovery of core commercial prices

was powered by CBD office, up approximately 29.9% from its pre-crisis peak.

» Prices in major-markets exceed their November 2007 pre-crisis peak level by approximately 25%, while

non-major market prices are approximately 2% below their pre-crisis peak.

» All of the CPPI segments have now recovered at least 60% of their post-crisis price decline. Thirteen of

the 20 CPPI segments have recovered all of their post-crisis price decline.

» Loans originated at a 75% loan-to-value (LTV) ratio during the 2004 through 2008 vintages would now,

on average, have current LTV ratios between 43% and 68% as adjusted by the CPPI. The worst CPPI

segment/pre-crisis vintage pairing is suburban office in non-major markets from 2007 – loans that were

originally made at 75% LTV would now have a CPPI adjusted LTV of 89%.

ETA: These are commercial numbers, not residential, but impressive nonetheless.

 

[fantasycurse42]

Come to NYC, they're easily 25-50% higher in certain spots.

 

[The Ref]

Not in Florida..... But things were silly in 2005

 

[Long Ball Larry]

Thanks, Obama!

 

[Ned Ryerson]

Come to NYC, they're easily 25-50% higher in certain spots.

I'm in Long Island, bought in 2007, and definitely could not get what I paid then if I put my house on the market now.

 

[cstu]

Not in Florida..... But things were silly in 2005

My apologies, I was reporting American numbers.

 

[skol asylum]

Yeah, not in AZ either.

 

[matuski]

Still no San Antonio.

 

[xulf]

Bought in 2012 and could get 20%+ more for it now...without considering improvements

 

[The Ref]

Not in Florida..... But things were silly in 2005

My apologies, I was reporting American numbers.

I get it. I bet Vegas hasn't rebounded either. Other parts have.

 

[tommyGunZ]

Bought in early 2013 in San Diego, and up ~ 40%.

 

[NutterButter]

Thanks, Obama!

Guy can't do anything right