2020 Expectations

With apartment sales leading the way in 2018, $50.9 billion has been closed transaction wise in the fourth quarter of last year. This data equates to a 9% gain year-over-year and the trend seems to have continued throughout 2019. As the federal funds rate is expected to increase, we may see a decline in acquisitions as a reduction in cap rates may be immanent. This will affect price points as equity for acquisitions will decline pursuant to more lucrative income producing assets in turn causing a reduction in multi-family property values. Due to the recent boom in the last few years we are seeing the peak of property valuations which will inevitably start tapering down causing opportunity in the buyers’ market.