Property Price Growth Slowed Again in June
Due to the coroanvrius pandemic and the recession, property price growth was stagnant last month.
Commercial property price growth slowed in the US in June, according to a new report by Real Capital Analytics.
The US National All-Property Index was stagnant in June compared with the previous month and has gained only 3.6% compared to last June, according to the latest RCA CPPI summary report. The Index’s growth has slowed recently due to the coronavirus pandemic and recession.
Of all the sectors—industrial, apartment, office, all-property and retail—retail fared the worst, dropping .3% from May to June and dropping .7% since June of last year, marking the first annual price decline in the sector since 2001.
“Retail sector distress ballooned in the second quarter of 2020, which will likely speed price discovery for this asset class,” the report said.
The office sector also fared poorly in June—the asset class had no price growth from May to June, and its year-over-year was up only 2.3% from last June. CBD office helped to drag this sector down, with prices falling .8% from May to June and increasing only .8% year-over-year.
The apartment and industrial sector price growth also slowed in June, to 7.1% and 7.6% year-over-year, respectively.
Commercial Real Estate activity dropped 68% in the second quarter, according to US Capital Trends, with industrial-sector sales, the best-performing class, falling by half.