During the post-recession recovery, two apartment-transaction indicators have clearly been positive: the percentage of the asking price at which properties closed has increased steadily; and the number of months to close has gradually declined. In the past year, though, these two indicators appear weaker, as the CoStar apartment data show (see chart below).
After 2010, average transaction prices rose from about 92 percent of the asking price to more than 100 percent. While this happened, the average number of months to close declined from roughly 2.6 to 2.3. These changes were consistent with the strong multifamily recovery and the increased liquidity associated with it. But, beginning in 2013, the number of months to close went back up to 2.6. Similarly, in the first two quarters of 2014, the average ratio between the transaction and asking prices dropped below 99 percent.
Read more...2Q Data Hint at Potential Market Peak - Multifamily Executive Magazine
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