Via Moody’s and Research Recap:
“The Moody’s/REAL Commercial Property Price Index (CPPI) measured a 4.2% decline in March, bringing the index to its lowest level since the peak in October 2007. The CPPI continues to bounce along the bottom as a large share of distressed transactions preclude a meaningful recovery of overall market prices at this juncture. Indeed, the post peak low in price has been reached in the same period as a post peak high in distressed transactions has been recorded. The growing share of distressed transactions is consistent with Moody’s observations from the CMBS market. Given that it may take 12 to 24 months to foreclose on a property and execute an REO sale there is a lag effect that results in fewer distressed transactions coming to market in the early stages of a downturn and an increased level in later stages (i.e. now)….”
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.