As the economy sours and speculation over the scope of the downturn intensifies, buyers and sellers in the multifamily sector are migrating into two camps: those who feel compelled to close deals now before market fundamentals erode and the cost of debt keeps rising, and those who are deciding to pull back and wait for the next cycle.
Signs of a cooldown are increasing, even in an asset class that posted 15% YoY rent increases in Q1. Buyers are still out there, but the number of offers and property tours is declining and, as GlobeSt.com recently reported, many of the deals on the table aren't hitting their whisper prices.
No one is suggesting that the perfect storm of market conditions that has fueled an unprecedented boom in multifamily properties is going to disappear anytime soon.
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