Many Investors Are Trying To Wait Out Downtrend
- Property prices have fallen by an estimated 2.3% to 12.5% year-over-year depending on property type
- Prices typically fall more quickly than they recover
Financing Limits Putting Downward Pressure On Prices
- Tighter and more costly financing caused price declines as prospective buyers calibrate to higher debt costs
- Investors should make sure consider contingency financing options incase the chosen lender falls through
Investors Waiting For Recovery Should Expect Longer Hold
- Investors should be prepared for an extended price recovery cycle
- Investors must consider their return on equity and relational returns of repositioning capital into other markets and asset types
*CPPI Core Index weighs Apartment, Retail, Office, and Industrial assets equally
Sources: Marcus & Millichap Research Services, Real Capital Analytics, Green Street
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