Apartment sales dropped 28% in October

Market Overview - Apartment values have increased, with Real Capital Analytics reporting a 0.5% year-over-year rise in commercial property price indexes for multifamily properties, and an annualized increase of 3.6% from September [3] - Cap rates have decreased by 10 basis points over the past year, averaging 5.5% in October [3] Transaction Insights - Camden Property Trust's CEO noted that cap rates for Class A assets are stabilizing between 4.5% to 5%, while Class B assets range from 5% to 5.5% [4] - The transaction market for 2025 is expected to be similar to 2024, with fluctuations observed in sales volume, which increased in Q3 but fell in October [4] - The overall sales volume for apartment transactions fell by 28% year-over-year to $10.2 billion in October, with individual asset sales down 22% year-over-year [8] Sales Activity - Total individual asset trades over the 12 months ending in October reached $131.4 billion, indicating a return to pre-COVID-19 levels, as the average from 2015 to 2019 was $126.4 billion per year [8] - Portfolio activity saw a significant decline of 54% year-over-year to $1.3 billion, contributing to the overall decrease in sales [8] - Mid- and high-rise trades fell by 32% year-over-year to $4 billion in October, while garden property transactions decreased by 25% year-over-year to $6.3 billion [8]