Prices began falling over two years ago and significant declines were seen throughout 2009, with several months experiencing 5%+ value drops. The 1.0% growth in prices seen in November is a small bright spot.All Property Type Aggregate Index recorded a 1.5% price decline in the month of October. The index now stands 43.7% below the peak measured two years ago, in October 2007.
October measured an uptick in transaction volume compared to previous months. 97 repeat-sales totaling $1.4 billion were used in calculating the monthly index. Highlights:
- The eastern office market was dragged down by the poor performance in New York over the past year. Office prices in the East fell 37.3% annually and 40.6% from the peak.
- The South had the worst performance of any region, with three of the four property types measuring annual declines greater than 30%. Apartments in the South saw the largest drop of any sub-index, with prices cut in half over the past year.
- Southern California properties saw relatively mild price declines with no property type measuring an annual decline above 30%.
- New York offices saw the largest annual price declines of the three MSA-level office indices. Office prices in New York fell 38.1% over the past four quarters, and have dropped 39.3% overall.
- Prices on Florida apartments have been falling for the past three years and this year, prices plummeted 46.1%. Florida apartment values are now 51.6% below their peak.
