The current trend in the market is pretty clear and the Q2 numbers will support one basic fact. Residential Real Estate is slumping and Commercial Real Estate is firming up.
The Micro-trends break down more like this: Record setting sales for both office buildings and hotels. However, there have been fewer apartment transactions than we have seen the last couple of years.
Incredibly, we have seen an increase in values across the board. The smaller 5-9 unit buildings are still hitting record high sales figures and the 10+ unit deals are climbing as well.
Because of the number of “trophy” properties trading hands the average price per foot and price per unit has jumped significantly.
What about the “bubble”? Well transactions over all are down approximately 50% from 2004, yet values are continuing to grow.