Even the Northeast region that posted the strongest commercial property price gains in the third quarter saw price growth slow dramatically over those three months, according to the latest CoStar Commercial Repeat Sale Indices, which monitor price differences in repeat sales of the same property.
The Northeast equal-weighted pricing index advanced by 1.8%, the fastest quarterly growth among all regions, but a significant deceleration from its 2.8% gain in the second quarter.
In CoStar’s equal-weighted indices, a $50 million property sale carries the same weight as a $1 million sale. Because there are many more sales of small properties than large ones, the equal-weighted indices tend to reflect the price changes of the most common property sales across markets.
The equal-weighted index for the South region rose by 1.4%, a sharp deceleration from its prior two quarters of price gains above 4%.
Price growth was flat in the West region after gaining 2.6% in the second quarter.
Prices in the Midwest region fell by 0.7% during the third quarter after gaining 2.4% a quarter earlier.
All regions saw slowing price gains in the 12-month period that ended in September over the 12-month period that ended in June.