For the four quarters ended June 30, 2017, skilled nursing, assisted living and independent living properties remained at or near their all-time high values, while cap rates decreased across the board.

A quarter does not make a trend, but across the seniors housing and care spectrum, values have remained stubbornly high. Stubbornly? Skilled nursing values peaked in 2016, while seniors housing peaked in 2014 with a matching peak in 2016. People, including myself, thought that values would slowing decline, especially if interest rates spiked up. Well, neither event has occurred.

For the 12 months ended June 30, 2017, skilled nursing average prices posted a small decline to $97,900 per bed from the record in 2016 of $99,200 per bed, while the average cap rate dropped from 12.2% to 11.9%. Demand is obviously still there, and low capital costs are driving the pricing.

Assisted living posted a 12% increase to $216,700 per unit for the 12 months ended June 30, with the average cap rate dropping 30 basis points to 8.2%, also compared with 2016.

Meanwhile, average independent living prices dropped slightly by 2.6% to $222,200 per unit, and also had a 30 basis point decline in the average cap rate to 6.9%.

So all three subsectors had a 30 basis point decrease in the average cap rate since the 2016 calendar year results. That certainly spells consistency. And despite the attempts by the Fed, interest rates do not appear to be going anywhere, which bodes well for all buyers, sellers, and developers. At least for now.