Commercial real estate fundamentals began showing signs of a firmer stabilization in the second quarter, according to the findings of the Mortgage Bankers Association's (MBA) Commercial Real Estate/Multifamily Finance Quarterly Data Book.
According to the MBA, the second quarter was also the fourth straight quarter of U.S. economic growth and the second straight quarter of declines in the rate of growth. The MBA attributed a stabilizing economy as helping to bring stability (if not growth) to property markets, especially the housing rental sector. MBA cited U.S. Census Bureau figures that showed households owning their home declined by 370,000 since 2005, while the number of rented households increased by 3.25 million during the same period.
‘Commercial and multifamily real estate markets are mirroring the broader economy,’ the Data Book said. ‘Property prices appear to have stabilized, with differences between the leading price indices seeming to highlight variations in the market.’
SOURCE: Mortgage Bankers Association