The latest release of the Moody's/REAL Commercial Property Index showed a notable monthly decline in the All Property Type Aggregate Index as it decreased 3.1% in July. Nationwide, prices are currently 43.2% below their peak in October 2007 and are only 0.9% above the recession low recorded in October 2009. Moody's found the latest price drop unsurprising as it has "noted for several months that markets are likely to remain choppy for some time as property values slowly form a bottom in conjunction with a gradual recovery of the broader economy," said Moody's Managing Director Nick Levidy in a Wall Street Journal article.
According to CoStar, "sales transaction dollar volumes picked up for all property types during the second quarter of 2010 with significant increases in the office sector as well as multifamily... Generally, an increase in transaction volumes indicates a positive movement in prices; however, a significant proportion of distressed sales will add both volatility and noise to these indices and right now all we can say is that we are observing a shaky bottom." Neal Elkin, president of REAL, spoke with GlobeSt.com earlier this year and commented that "given a lot of the conflicting pressures on pricing in the asset classes, our view has been that bouncing along the bottom would be the most likely scenario. These types of gyrations—up a little bit, down a little bit, up a little bit—are consistent with that."
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