Secondary markets defy big city drag
CoStar’s equal‑weighted index, which dealt with each deal the exact same despite price, recorded the stable quote for smaller sized properties frequently found outside the biggest seaside metros.
On the other hand, the value‑weighted index, which tilted towards large, institutionally owned possessions in significant cities, showed continuous cost pressure at the top of the marketplace.
“The January report marks the 4th consecutive month that CoStar’s equal‑weighted and value‑weighted composite indices moved in diverging directions,” said Chad Littell, national director of US capital markets analytics at CoStar and author of the report.
Littell said expert financiers largely stepped back from the marketplace over the previous year as rates rose and cost discovery stalled.
“Expert financiers have remained in a wait‑and‑watch stance, and we are now seeing a combination of inflection points such as a flooring in rates,” he stated.