03 Apr Fastest Property Price Decline Since Great Recession
According to CoStar data, property prices in the US are falling at the fastest rate since the Great Recession, partly due to the Federal Reserve’s decision to raise interest rates eight times in the 12 months through February. The decline stems from commercial real estate investors closely watching economic developments, causing a ripple effect that is flattening the growth of asset prices in the latter half of 2022. The value-weighted US composite index, which reflects larger property sales common in major cities, has dropped 16% since its peak last spring — the fastest decline since 2008. Meanwhile, the equal-weighted US composite index reflecting price changes more common in small markets has fallen 7% since its peak last summer. Additionally, multifamily properties have experienced their eighth monthly price decline as demand slows.