Moody’s reported today that the Moody’s/REAL All Property Type Aggregate Index declined 3.3% in February. Note: Moody’s CRE price index is a repeat sales index like Case-Shiller – but there are far fewer commercial sales and there are a large percentage of distressed sales – and that can impact prices and make the index very volatile.
Below is a comparison of the Moodys/REAL Commercial Property Price Index (CPPI) and the Case-Shiller composite 20 index. Beware of the “Real” in the title – this index is not inflation adjusted.
The Moody’s/REAL Commercial Property Price Index fell 3.3 percent from January and 4.9 percent from a year earlier. It’s up 0.8 percent from an eight-year low in August, Moody’s said in a statement today.
Click on graph for larger image in graph gallery.
CRE prices only go back to December 2000. The Case-Shiller Composite 20 residential index is in blue (with Dec 2000 set to 1.0 to line up the indexes).
According to Moody’s, CRE prices are down 4.9% from a year ago and down about 44.7% from the peak in 2007. Prices are just above the post-bubble low last August – and about at the levels of 2002.
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