Focused on lender-driven appraisal trends, this report shows LightBox CRE activity index was flat in Q3 2023 and 2024 forecasts redrawn as appraisal activity remains muted.
We saw the following trends this quarter:
- LightBox CRE Activity Index dropped to 85.5 in Q3 2023, still below early 2022 levels.
- Appraisal Award component decreased to 58.2 due to rate hikes and lender caution.
- RFP response rate for appraisals increased by 7%, with 3.4 days shorter turnaround time in Q3.
- CRE lending outlook has been revised with a potential rebound in late 2024, contingent on a Fed stance that pivots away from rate hikes.
In the third quarter, the commercial real estate market continued to face challenges, including still-rising interest rates, concerns about loan maturities, and geopolitical uncertainties. The LightBox CRE Activity Index, tracks leading indicator data for CRE deals, ticked down in Q3 2023.
In this CRE Market Snapshot Q3 2023 report, LightBox analysts examine deal-making market statistics with a deep dive into appraisal activity. Read the full report with details on market trends here. Stay tuned for Part 2 of this report which takes a deep dive into environmental due diligence trends, including pricing, turnaround time and metro performance. Additionally, LightBox will launch Part 3 highlighting trends in the broker and investment sector with the Q4 2023 reports.