Moody's: Is CRE Turning Corner?
Commercial real estate prices as measured by Moody's/REAL Commercial Property Price Indices rose 2.1% in February, offsetting most of the losses the CPPI had posted since October.
"We interpret the CPPI's increase in February as a continuation of the process of price discovery, which is likely to continue over a protracted period, possibly a few more quarters," said Moody's vice president Sally Gordon. "Few foreclosures or other forced sales at market clearing prices have occurred to help tease out the impact of the credit crunch on current property prices."
Moody's notes that fewer completed repeat sales transactions - the basis of the CPPI - took place in February than in preceding months. Volumes may be down, Moody's said, because prices have not yet adjusted to market conditions. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/