MIT real estate index continues slide - Tampa Bay Business Journal:

ycoguqi.wordpress.com
The 5.8 percent drop in the pricesd is the fourth consecutive quarterlyu drop and the sixth in the past seven quarters, according to an index developedd by MIT’s Center for Real Estate. Pricexs are now 21 percent belowq where they were a year ago and 26 percent belowits mid-2007 Commercial real estate prices in the first quarted are comparable to the 27 percentr drop the index recorded in the last major commercial property downturn in the late 1980s and early 1990s.
“It’s possiblr that the first quartedr of 2009 was the nadir in market said ProfessorDavid Geltner, director of researcbh at the MIT Center for Real Estate, in a “Sales volume is down almost to as reflected in our demandd index.” The MIT Center for real estatre tracks prices based on closed dealds but also examines demand for property and changes in pricing. While the priceds buyers are willing to pay for commerciaol real estate has fallen forseveb quarters, the prices sellers are willing to acceptf rose about 1 percent in the first “This type of disconnect between the supplty and demand sides of the market, with demand-side sentimentr plunging and property owners refusing to sell into such is greater than we have ever seen before, and is very nearlty removing every bit of liquidity from the market,” said Geltnere in a statement.
The index tracks pricee that institutions pay or receive when buying or selling commercial propertiezs such asshopping centers, apartment complexes and office