The Moody’s/REAL Commercial Property Price Index (CPPI) reported its largest ever one-month increase of 6.3% in May. This is also the first rise in six months for the index.
Moody’s analysts believe that strong distressed asset pricing, climbing 4.8% in May, played a considerable role in this month’s increase. They noted that distressed transactions accounted for 27.0% of repeat sales, as opposed to 30% in April. They have also aided price recovery compared to them being a hindrance in the past.