Real estate sales to level this year

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The Pikes Peak region has seen an infusion of close to $1 billion in new commercial real estate investment during the past five years, but industry experts are predicting transaction volume and prices may level out during 2008.

Prices during October increased 1.6 percent from September, according to the Moody’s/Real Commercial Property Price Indices.

Moody’s research indicates that the current credit crunch has increased the cost of debt financing and caused uncertainty in pricing transactions.

Also, a decline in sales volume is added proof that pricing may have peaked for the near term, according to Moody’s. The dollar volume of September transactions was down 53 percent from the volume in June, before the credit crunch hit.