Following an extraordinarily high level of apartment transaction volume in 2016, deal volume fell by a staggering 63% year over year (YOY) in January, on sales of $6.7 billion, according to the most recent US Capital Trends report by RCA Capital Analytics. Last month's multifamily deal volume is, so far, consistent with volume figures recorded in January 2014.
The 91% YOY drop in portfolio and entity-level transactions, from $8.6 billion in January 2016 to $769 million in January 2017, accounts for a large portion of the overall decline. Single-asset sales also fell, 37% YOY, on a volume of $6.0 billion, following a 27% YOY drop in December. Single-asset slowdowns on this scale suggest “a growing sense of caution and uncertainty in the market,” according to RCA, but, thus far, the deceleration hasn't had an effect on property pricing.
Read more...RCA: Transaction Volume Falls Back in January | Multifamily Executive Magazine
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