Tuesday, August 26, 2008

Sales Flow Through Multifamily Sector as Others Dry Up

Although sales in all property types have slowed, multifamily sales haven't fared as poorly as other commercial and residential categories, according to Commercial Property News.

In its August edition, CPN reports that because of solid fundamentals, a relatively small size, and government-sponsored entities' purchase of residential loans, multifamily is being protected from the problems in the credit market.

Real Capital Analytics Inc. reported that year over year apartment sales fell from 2007-2008 as follows:

Loan Range Jan-May 2007 vs. 2008
$5-$10 million down 43.73%
$10-$30 million down 37.58%
$30-$50 million down 38.92%
$50 million+ down 63.78%

Fannie Mae and Freddie Mac have increased their spending in the paartment market, keeping sales liquid in spite of industry problems.

Experts in the Multifamily Market say they "have the least negative outlook" for multi-family compared with other property types.