"December should not be this busy," Morris H. Groberman ofColliers International tells GlobeSt, "but I have plenty ofbuyers." A driving force he explains is the availability oflong-term money at low interest rates. Groberman says apartmentfinancing can now be had in the 6's. Checking today's rate sheet,he says a ten-year fixed FNMA loan can be had at 6.85%.

Seattle apartment analysts, Dupre+Scott, have predicted averagevacancies across the region will hit 7.5% net year. Walt Smith, VPand principal of HSC Real Estate, believes 8.5% will be closer tothe truth. Furthermore, at a local gathering of industry expertsthis week, Smith said, "Prices in the multi-family market are goingto go down by 10 to 15 percent in 2002." He also expects the volumeof apartment deals will drop as low as $550 million nextyear--contrasted with $650 million in 2000 and $1.5 billion in1998.

But if investors are looking to buy, financing is cheap andprices are anticipated to fall, why fewer deals? "I don't thinkwe'll see sellers actually agree to these discounts," says Smith."With lower interest rates and what is still a favorable lendingenvironment, most [owners] will refinance, pull their cash out andwait for the next upturn."