Apartment transactions fall 8% in August

Core Insights - Overall mid- and high-rise sales in August decreased by 3% to $5.9 billion, while individual trades increased by 39% year-over-year, driven by the sale of 800 Fifth Avenue in New York City for $810 million [3] - Garden property sales fell by 13% year-over-year to $6.5 billion, mainly due to a decline in portfolio sales [3] - Apartment transactions remain below pre-Federal Reserve rate hike levels, with a noted slowdown in real estate transactions since early 2022 [4] Investment Interest - Institutional equity sources, including insurance companies, opportunity funds, endowments, and pension funds, are showing strong interest in multifamily deals due to favorable future supply-demand dynamics [5] - The recent 25 basis point cut in the Federal Reserve's benchmark interest rate has been positively received, with hopes for further reductions to stimulate sales [5][6] Sales Volume and Trends - Apartment sales volume decreased by 8% year-over-year to $12.5 billion in August, while individual property sales rose by 11% year-over-year to $11.2 billion [7] - Portfolio activity saw a significant decline of 64% year-over-year in August, dropping to $1.3 billion, which negatively impacted overall sales [7] - The Real Capital Analytics commercial property price indexes for multifamily properties increased by 0.2% year-over-year, contrasting with a 6% annual decline a year ago, while cap rates have remained stable at 5.5% since August 2024 [7]