MIAMI—One of the key themes we closely monitored in 2017 was the divergence in buyer and seller pricing expectations. That's one of the many observations from Chris Muoio, senior quantitative strategist at Ten-X.
“This widening of the bid-ask spread was sourced over doubts over the continuation of the cycle on the buy-side, a rise in interest rates heading into the year and seller expectations for robust pricing increases,” Muoio tells GlobeSt.com. “The end result was a decline in transaction volume from the year prior.”
Ten-X believes this “gap” will begin to close this year, and it will do so due to sellers accepting the new paradigm. The lack of appreciation over the past year will temper expectations, as will continued tepid fundamentals in the coming quarters.
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