Prices Now Grow Faster At Lower End
April 3, 2017 | by PAUL BUBNY | GlobeSt.com
WASHINGTON, DC—Recent pricing trends suggest that the recovery is spreading across more markets, says CoStar Group.
WASHINGTON, DC—Pricing trends for the first two months of the year went separate ways, CoStar Group said Friday in reporting the latest CoStar Commercial Repeat Sale Indices. The firm’s value-weighted US Composite Index, reflecting the bigger-ticket asset sales common in core markets, fell 1.4% in February 2017, after a similar decline of 1.2% the month before. Conversely, the equal-weighted US Composite Index, which reflects the more numerous but lower-priced transactions common in secondary and tertiary markets, increased by 1.4% in February on top of a 1.9% gain in January.
CoStar points out that both composite indices posted positive growth on a year-over-year basis. However, the firm says recent divergence in pricing trends likely reflects a maturing market cycle, especially for the high-value properties in core markets that led the recovery.
Bearing out this overall trend was the performance of a pair of sub-indices of the equal-weighted Composite Index. The general commercial segment of CCRSI’s national composite index, influenced by smaller, lower-priced properties, increased 1.4% in February and 10.5% Y-O.Y.
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