Hoffmann noted that higher mortgage rates, which increased by 21 basis points compared to the previous quarter, were offset by lower property prices and modest rental income growth, contributing to the overall improvement in investment conditions.
Net operating income (NOI) showed largely positive performance in the second quarter, with growth observed nationally and in 19 of the 25 metros studied. Two metros saw declines, while four remained flat.
Read next: HUD modernizes manufactured homes with major rule changes
However, the annual picture was more mixed, with NOI falling in 14 of 25 markets despite overall national growth. The District of Columbia emerged as the best annual performer with a 4.4% increase, while Jacksonville saw the steepest decline at -5.5%.
Property prices continued to face downward pressure, dropping nationally and in most markets over the quarter. Only four markets experienced growth, with Boston leading at a modest 0.6% increase. The annual trend was universally negative, with prices declining in all markets and down 8.3% at the national level. Eleven markets saw contractions exceeding 10%.