Originally published on March 30, 2023, by Michael Tucker for the Mortgage Banker's Association.
The commercial property pricing decline steepened in February, pulled down by a sharp fall in the apartment sector, reported MSCI, New York.
The MSCI RCA CPPI National All-Property Index dropped 6.9% from a year ago and 2.2% from January.
“Apartment prices experienced the largest annual decline of all property sectors,” said Michael Savino, Senior Analyst with MSCI. He noted apartment prices have fallen 8.7% from a year ago, the largest drop for this sector since 2010.
Rising mortgage costs due to interest rate hikes have put pressure on deal activity and property pricing, MSCI reported. Deal volume across all major property types fell 51% year-over-year in February.