Over the past several weeks real estate experts have seen signs of stabilization in the market, particularly in the multifamily sector. However, they caution that valuations may not immediately respond to the 50 basis point rate cut announced by the Fed yesterday, as the industry adjusts to a new normal.

"I'm optimistic that we're at the forefront of the next cycle," Mitch Sinberg, senior managing director of mortgage banking at Berkadia, told GlobeSt.com.  "The bid-ask spread that's been persistent for the last 18 months has largely come together. We're seeing a lot more groups who were on the sidelines now coming out to acquire deals."

Sinberg points to increased transaction activity in recent weeks as a positive indicator, attributing it partly to reduced volatility in the 10-year Treasury yield. "These are all barometers and indicators that things are slowly going back to normal," he explained.