Investment real estate values increased by 4.1 percent during July 2016, according to the FTSE NAREIT PureProperty Index Series, which provides the earliest measurement of changes in the market values of properties held for investment purposes. Nationwide property appreciation averaged 12.1 percent since the beginning of 2016.
Brad Case, NAREIT’s senior vice president for research and industry information, discussed the results in a video interview with REIT.com.
Case attributed the price increase to the strength of the market cycle, which has persisted throughout all of 2016.
The South of the U.S. had the weakest showing of the geographic regions in July, with property prices gaining about 3 percent for the month. Case was quick to point out, however, that the South has had the strongest performance for the year, with nationwide property appreciation averaging 15 percent in 2016.
“Very strong performance across the country,” Case said, “but marked differences between the performances of properties of a given type in different parts of the country."