What has become the usual news on CRE prices continues to be the case, according to an MSCI report; they were down now for the eighth month in a row. However, the rate decline slowed, "led by improvements in the industrial sector," they wrote, adding that the RCA CPPI National All-Property Index was down 3.0% year-over-year and 0.2% over the moth prior.
Whether that's a trend is yet to be seen. There are some property types, such as single-family build-to-rent, that have seen widespread rent increases — not the same as property prices, of course, but indicating areas of market strength.
But with the Federal Reserve signaling that rate cuts are far from the fast path, ongoing financing is unlikely to support higher prices. The more financing needed, the higher the expense, and so, the less appealing the prices, which would likely have to drop before attracting more buyers.
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