The slight slowing of decline in early summer is over.
Commercial real estate prices…renewed steep declines and low transaction volume in July… The [Moody's/REAL Commercial Property Price Index] was down 5.1% from June after having declined by only 1% the prior month. It is now 30.8% below what it was a year earlier and 38.7% below the peak measured in October of 2007.
Overall market transaction volume continued the pattern of calendar 2009. “The market has averaged about 375 sales per month for the seven months in 2009,” said Moody”s Managing Director Nick Levidy. “Over the same time period in 2008, sales were averaging nearly 1,100 a month.”
The unwritten point that never seems to get mentioned anymore is that the summer of 2008 was well into a recession. Bear Stearns had already failed, the government had already started to move to bail out the real estate market, the credit markets were largely frozen up, and unemployment was climbing.
Even if we were somehow reproducing the same numbers we were a year ago, they would still be staggeringly bad. The fact that we are producing just a fraction of those numbers is awful.