Search
 

Sales Volume, Velocity Continue Downward Spiral

The slowdown in property trades has filtered over to land sites, and things don't look like they'll pick up anytime soon.

By Sule Aygoren Carranza | Updated on November 24, 2008

NEW YORK CITY-Not surprisingly, investment activity in the multifamily sector, like other segments of the industry, fell even more in October. With the global credit crunch in full swing over the past year, a lack of financing and the general uncertainty over the future paralyzed buyers of all kinds. This was reflected in deal volume and velocity, which were a fraction of what they were last year, according to Real Capital Analytics’ most recent Capital Trends Monthly report.

“October 2008 was the first full month in which transaction metrics within property types measure the extent of volume declines in both capital and deal flow since the onset of the crunch,” according to RCA analysts. “The chill that was apparent, even then, has become a deep freeze.”

For all property types, sales volume in October 2008 was a mere $4.76 billion–just a quarter of the level 12 months ago and only 20% higher than October 2006. The flow of transactions two years ago was six times more than October 2008.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.