CHICAGO—Real estate market fundamentals in North America performed in line with expectations during the first half of 2017, but there was also a sharper-than-expected slowdown in transaction volume, according to a mid-year analysis by LaSalle Investment Management. Still, even though the US has recently seen below-trend economic growth, both the US and Canadian real estate markets continue to attract a high level of investor interest, and the US transaction level remains above the historical average.

“Transaction volume has slowed down in the gateway markets from very high levels,” Bill Maher, head of research and strategy for LaSalle's Americas division, tells GlobeSt.com. In 2017, many investors tried to boost yields by searching for deals in secondary markets. Inevitably, these deals tend to be smaller, and that helped bring down the overall transaction volume. “You're going from deals worth hundreds of millions of dollars to deals of 30 or 40 million.”

Trading volumes are down between 15% and 20% through April, according to LaSalle. But so far, Maher doesn't see much reason for concern.