Printer Friendly

Economic and market indicators.

Market Rates and Bond Yields--%

 Jun. Dec. Jun. Dec. Jun. Jun.
 2008 2008 2007 2007 2006

Reserve Bank Discount 0.50 0.86 2.25 4.83 6.25 6.02
Rate

Prime Rate (monthly 3.25 3.61 5.00 7.33 8.25 8.02
average)

Federal Funds Rate 0.21 0.16 2.00 4.24 5.25 4.99

3-Month Treasury Bills 0.18 0.03 1.86 3.00 4.61 4.79

6-Month Treasury Bills 0.31 0.26 2.13 3.23 4.76 4.97

3-Month Treasury Bills 0.39 1.77 2.76 5.02 5.33 5.35

LIBOR-3 month rate 1.13 2.47 2.95 5.17 5.35 5.38

U.S. 5-Year Bond 2.71 1.52 4.37 3.49 5.03 5.07

U.S. 10-Year Bond 3.72 2.42 4.78 4.10 5.10 5.11

U.S. 30-Year Bond * 4.52 * 2.87 * 5.12 * 4.53 * 5.20 * 5.15 *

Municipal Tax Exempts 4.56 5.17 4.50 4.23 4.34 4.36
(Aaa) [dagger]

Municipal Tax Exempts 4.84 6.15 4.92 4.58 4.65 4.88
[dagger]

Corporate Bonds (Aaa) 5.61 5.08 5.68 5.49 5.79 5.89

Corporate Bonds (A) 6.39 6.70 6.43 6.19 6.33 6.39
[dagger]

Corporate Bonds (Baa) 7.50 8.46 7.07 6.65 6.70 6.78

* As of April 2006, the Fed went back to reporting 30-yr rates; the
historical data is 20+ year rates. A factor for adjusting the daily
nominal 20-year constant maturity in order to estimate a 30-year
nominal rate can be found at www.treas.gov/offices/domestic-
finance/debt-management/interest-rate/itcompositeindex.html.

[paragraph] Seasonally adjusted
[dagger] Source: Moody's Bond Record
[double dagger] Revised figures used when available

Stock Dividend Yields--%

 Jun. Dec. Jun. Dec. Jun. Jun.
 2009 2008 2008 2007 2007 2006

Common 2.35 3.00 2.15 2.06 1.81 1.96
Stocks--500

(Source: Standard & Poor's)

Other Benchmarks

 Jun. Dec. Jun. Dec. Jun Jun.
 2009 2008 2008 2007 2007 2006

Industrial 95.4 103.6 111.7 114.1 113.4 111.9
Production ** ** ** ** ** **
Index
[paragraph]
**
(Federal
Reserve 2002
= 100)

Unemployment 9.5 7.2 5.5 5.0 4.5 4.6
(%)
[paragraph]

Monetary
Aggregates,
daily avg.

M1, 1,650.1 1,595.8 1,385.6 1,364.2 1,363.9 1,369.9
$-Billions

M2, 8,370.1 8,154.1 7,687.2 7,447.1 7,241.2 6,829.9
$-Billions

Member Bank
Borrowed
Reserves

$-Billions N/A N/A N/A N/A 0.187 0.253
##

Consumer
Price Index

All Urban 215.7 210.2 218.8 210.0 208.4 202.9
Consumers

** On Nov. 7, 2005, the Federal Reserve Board advanced to 2002 the base
year for the indexes of industrial production, capacity, and electric
power use This follows the Dec. 5, 2002, change to a 1997 baseline,
from the previous 1992 baseline. Historical data has also been updated.

## As of March 2008, the Federal Reserve no longer supplied the total
reserves.

Per Capita Income

Per Capita 1Q09 4Q08 1Q08 4Q07 1Q07 4Q06 1Q06
Personal
Disposable
Income

Annual Rate 35,180 34,821 34,351 34,179 33,307 32,754 31,791
in Current
$s

Savings as 4.3 3.2 0.2 0.4 1.1 0.9 1.0
% of D.P.I,
[dagger][dagger]

 Regional Mall CBD Office

 2nd Qtr 1st Qtr 2nd Qtr 1st Qtr
 2009 2009 2009 2009

Discount
Rate (IRR) (a)

 Range (%) 7.00-15.00% 7.00-11.00% 7.25-12.00% 6.25-11.00%

 Average (%) 10.09% 9.1 3% 9.03% 8.63%

 Change (b.p.) +96 +40

Overall Cap
Rate (OAR) (a)

 Range (%) 5.00-11.00% 5.00-9.50% 4.50-10.50% 4.50-10.50%

 Average (%) 7.79% 6.99% 7.94% 7.52%

 Change +80 +42

Residual
Cap Rate

 Range (%) 6.25-12.00% 6.00-10.00% 6.50-10.00% 6.25-10.00%

 Average (%) 8.63% 7.64% 8.31% 8.08%

 Change +99 +23

 Ware house Apartment

 2nd Qtr 1st Qtr 2nd Qtr 1st Qtr
 2009 2009 2009 2009

Discount
Rate (IRR) (a)

 Range (%) 6.50-12.50% 6.00-11.00% 7.50-14.00% 6.00-14.00%

 Average (%) 9.02% 8.33% 9.73% 9.05%

 Change (b.p.) +69 +68

Overall Cap
Rate (OAR) (a)

 Range (%) 5.50-10.00% 5.00-9.50% 5.50-9.50% 3.80-9.50%

 Average (%) 7.93% 7.13% 7.49% 6.88%

 Change +80 +61

Residual
Cap Rate

 Range (%) 6.00-11.00% 6.00-9.50% 5.75-9.50% 5.00-9.00%

 Average (%) 8.25% 7.51% 7.87% 7.35%

 Change +74 +52

(a.) Rate on unleveraged, all-cash transactions

DEFINITIONS: b.p.: basis points. Discount Rate (IRR): Internal rate of
return in all-cash transaction, based on annual year-end compounding.
Overall Cap Rate (OAR): Initial rate of return in all-cash transaction.
Residual Cap Rate: Overall capitalization rate used in calculation of
residual price; typically applied to the NOI in the year following the
forecast.

SOURCE: KORPACZ REAL ESTATE INVESTOR SURVEY. Personal survey of a cross
section of major institutional equity real estate market participants
conducted during April 2009 by PricewaterhouseCoopers LLP. For complete
information on results of these and other markets covered in the
Survey, contact PricewaterhouseCoopers LLP, PO Box 988; Florham Park,
New Jersey 07932

Conventional Home Mortgage Rates by Metropolitan Area (%)

 2nd Q 2009 2nd Q 2008 2nd Q 2007

Atlanta 4.92 6.11 6.34

Boston # 4.94 5.99 6.31

Chicago # 5.18 6.11 6.62

Cleveland # 5.17 6.07 6.37

Dallas-Fort Worth 4.96 6.19 6.44

Denver # 5.03 6.11 6.39

Detroit # 5.10 6.17 6.73

Houston # 5.12 6.23 6.61

Indianapolis 5.09 6.33 6.65

Kansas City 5.09 5.93 6.24

Los Angeles # 5.00 6.16 6.39

Miami # 5.17 6.34 6.68

Milwaukee-Racine 5.03 6.27 6.52

 1st Q 2009 1st Q 2008 1st Q 2007

Minneapolis 5.04 6.11 6.37

New York # 4.96 6.09 6.34

Philadelphia # 5.05 6.09 6.34

Phoenix 5.19 6.27 6.44

Pittsburgh 4.96 5.93 6.19

Portland # 4.98 6.11 6.27

St. Louis 5.07 6.22 6.53

San Diego 5.05 6.17 6.32

San Francisco # 5.02 6.19 6.37

Seattle # 5.03 6.06 6.42

Tampa 5.08 6.26 6.54

Washington, D.C. # 5.00 6.17 6.47

# Consolidated Metropolitan Statistical area

Conventional Home Mortgage Terms

 Jun. Dec. Jun. Dec. Jun. Jun.
 2009 2008 2008 2007 2007 2006

New House Loans- U.S.
Averages

Interest rate (%) 5.17 5.67 6.13 6.21 6.54 6.79

Term (years) [paragraph] 29.0 29.1 29.1 29.2 29.5 29.4

Loan ratio (%) 72.9 74.9 75.6 79.4 76.7 75.0

Price (thou. $) 344.0 351.6 352.7 347.7 357.9 355.5

Used House Loans-U.S.
Averages

Interest rate (%) 5.16 5.59 6.28 6.31 6.63 6.69

Term (years) 28.4 28.5 28.3 28.9 29.7 28.8

Loan ratio (%) 74.6 75.1 77.3 80.6 80.4 76.5

Price (thou. $) 328.0 284.9 310.3 280.0 297.9 306.9


For continuously updated economic indicators, visit www.appraisalinstitute.org.
COPYRIGHT 2009 The Appraisal Institute
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Valuation Insights & Perspectives
Date:Jun 22, 2009
Words:1275
Previous Article:Asia members receive MAI designation; Appraisal Institute expands regional relationships.
Next Article:Feedback 2.0--digital and print editions.


Related Articles
Figures show fresh cause for optimism.
Recession fears easing; Experts say the worst of the slump could be over.
Dollar Plunge Stalled As Market Struggles To Define Risk And Reward.
Economic and market indicators.
Taiwan's leading economic index turns positive in May.
Aso welcomes Nikkei stock index's recovery to 10,000 line.
LEAD: N.Y. stocks rise on better economic readings.
REFILING: LEAD: N.Y. stocks rise on better economic readings.
LEAD: Japan's key economic gauge revised upward in May.

Terms of use | Copyright © 2015 Farlex, Inc. | Feedback | For webmasters