Market Commentary
RealtyRates.com Developer Survey Reports Relatively Modest Increases In Discount Rates For All Sell-Out Property Types During 4th Quarter 2023
Prices continued upward, albeit at reduced rates, inventories were down, and modest increases in average discount rates for all Sell Out property types were reported during the 4th Quarter of 2023.
Both Site-Built Residential Subdivision rates increased an average of 26 basis points while Manufactured Housing rates increased an average of 34 basis points during the 4th Quarter. Likewise, Commercial and Industrial Subdivision rates were up an average 33 basis points. Meanwhile, Residential Condominiums increased 40 basis points awhile Commercial/Industrial Condominiums were up 45 basis points during the same period.
Overall, pro-forma and actual discount rates moved largely in tandem, indicating a market consistent outlook by developers.