The Q2 national growth rate was the highest since the third quarter of 2019 thanks to declining property prices and mortgage rates and increased net operating income (NOI) in most markets.
“The index experienced a sharp annual decline in each of the prior four quarters, but a pullback in property prices and moderating mortgage rates are helping AIMI regain its footing,” Hoffman said in a news release. “The index increased due to the confluence of net operating income growth, property price depreciation, and lower mortgage rates relative to recent trends.”
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Nationally, property prices fell by 10.1% and edged down in all but two markets: Miami (+0.1%) and Nashville (+0.5%). The national prices have only declined twice since the second quarter of 2010, and the Q2 drop marks the second one.
NOI rose by 1.8%, but nine markets experienced declines. According to Freddie Mac, “no markets were deeply negative, with the lowest performer being Phoenix at -0.8%.”
Source: mpamag.com