Investor interest in the seniors housing and care sector is strong. Transactions are near peak levels in terms of both dollar volumes and the number of deals closing. Over the past four quarters, 554 deals closed, a near-record pace and equal to $23.4 billion of transactions. Strong demand is pressuring prices higher, with per-unit pricing averaging $173,000 for seniors housing and $73,000 for skilled nursing on a four-quarter moving average basis in the second quarter of 2015. Prices for seniors housing have never been so high.
At 173,000, August's job gains are below market expectations and make a September rate hike by the Fed less certain The first Friday of the month at 8:30 EDT is widely anticipated by market participants as the Labor Department presents a fresh gauge of the most recent economic performance in its release of the labor report for the prior month. Today’s number was even more closely watched since it will be the most up to date information on the labor market that the Federal Reserve has prior to its upcoming September meetings where it will assess the state of the economy and determine whether or not it should raise its benchmark interest rate which has been near zero since the depths of the recession in late 2008.
Over the past 55 years, the skilled nursing industry has undergone transformation. Today, it continues to evolve, bolstered by demand for more specialized and medically complex services and a payment system that continues to change.