Are Weakening Apt. Prices More Than a Correction?

Muoio: “The weakness over the last three months actually demonstrates that the segment can’t defy gravity forever.”

IRVINE, CA—Many multifamily investors are uncertain as to the staying power of the expansion, and interest rates are likely to rise further, suggesting that price weakness could persist following the amazing run-up that we have seen, Ten-X‘s chief economist Peter Muoio tells GlobeSt.com. According to the firm’s CRE Nowcast, overall CRE pricing declined in September for the fifth consecutive month, and pricing in the apartment sector declined for the third consecutive month. With the prolonged slump, pricing’s annual growth rate is at the lowest level since Nowcast was initiated, and several sectors are in similar slowdowns.

We sat down with Muoio to chat about apartment-sector pricing and where he sees it heading.