Moderate levels of new single-family home sales and the erratic behavior of the multifamily construction market have contributed to a first-quarter decline in the Ticor Index, a leading indicator of national real estate activity.
The first-quarter decline continued into the second quarter with a drop of 2.2 points from March to April. Total housing starts were up modestly in April from March, pulled along by a spurt in apartment construction, according to Winston V. Morrow, president and chief executive of Los Angeles-based Ticor.
In March, the index stood at 94.8% of its 1981 base-year activity, a drop of 3.1 points from February and a dip of 5.2 points from the March, 1984 mark, Morrow added.
"The multifamily market has been running hot and cold since the end of 1984's third quarter," he added. "The uncertainty of the tax treatment of real estate investment--given the various tax revision proposals being discussed--has caused this fluctuation."