Monday, June 22, 2009

Moody's: CRE Prices Fall 8.6% in April

by Bill McBride on 6/22/2009 02:17:00 PM

From Dow Jones: Commercial Real-Estate Prices Fall 8.6% On Month In April

Commercial real-estate prices fell 8.6% in April ... which leaves prices down one-quarter from a year earlier ...

"The size of April's decline, following a 5.5% decline in January, also suggests that sellers are beginning to capitulate to the realities of commercial real-estate markets," says Moody's Managing Director Nick Levidy. ...
Prices in the CRE market are not as sticky as the residential market, so prices fall much quicker. We've seen plenty of half off sales for distressed CRE, and this report suggests the average decline is about 25% over the last year.