Yet the tighter credit market has hindered would-be buyers and sellers. The debt financing index dropped considerably over the quarter, from 45 to 22, with two-thirds of respondents reporting worse borrowing conditions than three months ago. This, says the organization, is a reflection of the continued widening of spreads and tightening of credit standards. Meanwhile, the equity financing index reached its lowest level ever, 13. A record 76% of those poled said equity capital was less available. Conversely, 17% said conditions were unchanged, while 2% saw improvement.

As far as investment is concerned, the sales volume index fell to 13 this quarter, the second-lowest reading in the NMHC survey's history. It also represents the 10th straight quarter with a below-50 reading. Three-quarters of executives reported lower sales volume than the prior quarter. A mere 1% saw the opposite. "While there are still many buyers looking to purchase apartment properties, there is an unusually wide disparity between buyers and sellers about the appropriate prices in today's market," says Obrinsky. "Even though investors remain committed to deploying considerable equity capital in the apartment sector, tighter credit makes it harder to hit target rates of return. The upshot is the current low level of transactions."

While financing is not as available now, it certainly was present last year. The Mortgage Bankers Association reports that despite the midyear slowdown, commercial and multifamily loan originations hit a record volume in 2007, with $507.7 billion, a 19% increase. Office properties took up the top spot in terms of financing volume, but multifamily was not too far behind. In terms of investors in these mortgages, conduits were the largest single investor group, responsible for $225.2 billion, or 44% of the closed loan volume. Yet Freddie Mac saw the greatest percentage increase in volume between 2006 and 2007, followed by Fannie Mae, both of which remain the main lenders for the sector.