ATLANTA—A lack of multifamily portfolio and entity-level transactions in the first quarter of 2017 contributed to a slow start to the year. However, multifamily sales activity is anticipated to be stronger during the second half of the year. That's according to ARA Newmark's Q1 2017 Multihousing Market Overview.

Yields held steady at 5.4% nationally, yet cap rates in tertiary markets have compressed over the past 24 months as more investors have moved into these markets in search of greater returns, the report reveals. And while annualized effective rent growth moderated to 2.1% nationally, western markets with heavy ties to technology employments saw the strongest gains.

“Cap rates remain steady,” Blake Okland, ARA Newmark vice chairman and Head of US Multifamily, tells GlobeSt.com. “Cap rates will potentially go lower throughout the year due to more demand for product than there is supply of available properties.” (Three factors are slowing down Atlanta office construction.