Apartment sales volume falls 18% in May

AshiraDigital Marketing2025-07-0199211

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Dive Brief:

  • Apartment sales volume fell 18% year over year to $8.2 billion in May, according to a report that data firm MSCI Real Assets shared with Multifamily Dive. Sales volume had been growing at a double-digit pace for 11 months before the decline in May. 

  • The RCA commercial property price indexes fell 1.1% year over year in May, according to MSCI. While that was an improvement from May 2025, the annualized change in prices from April is down 4.6%. 

  • Volume did increase 3% to $3.6 billion for mid- and high-rise properties. However, garden sales dropped 30% to $4.6 billion in May. Single-property sales fell 17% to $6.5 billion, while portfolio and entity-level trades declined 23% to $1.8 billion.

Dive Insight:

Despite the YOY spike in trades from the second half of 2024 into 2025, the apartment sales market was still trailing its pre-pandemic trading pace.

Doug Root, co-founder and managing partner of Arlington, Virginia-based Blackfin Real Estate Investors, which recently bought the Sage Creek Apartments in Augusta, Georgia, for $17.3 million, is hopeful that sellers will be more motivated to bring properties to market this year.

“It's certainly not gangbusters, but there is more out there on the market,” Root said. “I wouldn't say it's all actionable. I think there's a lot of price discovery going on.”

Owners that, a couple of years ago, might have expected interest rates and cap rates to fall are becoming more realistic about the economic picture.

“There's nothing really indicating that it's going to snap back to a low interest rate, low cap rate environment,” Root said.

In addition, some owners that may be struggling could be forced to make a move. “There is debt that's maturing, and the longer the hold periods go, the more people's hands are going to get forced,” Root said. “There's a little more of an expectation that this is how the market is now.”

Others are seeing similar trends. Douglas Wilson, chairman and CEO of San Diego-based Douglas Wilson Co., which provides business, workout and real estate services, said more lenders are seeking solutions for their problem properties.

“In the last six to nine months, we're seeing people move forward more and say, ‘Hey, we've got to get our hands on this problem,’” Wilson told Multifamily Dive. “We've got to get a resolution.”

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Bexley

The 18% drop in apartment sales volume during May indicates a slowdown from last year's levels, raising concerns about the overall state of real estate stability.

2025-07-01 20:48:05 reply
Irene

The steep 18% decline in apartment sales volume during May underscores the current economic uncertainty and consumer sentiments affecting real estate markets, foreshadowing a challenging time ahead for both buyers' eagerness to invest as well sellers seeking stable returns.

2025-07-01 20:48:20 reply
Eloise

The 18% drop in apartment sales volume for the month of May underscores a potential trend towards buying conservative as economic uncertainties linger on, affecting both homebuyers' decision-making processes and developers investment strategies.

2025-07-05 02:02:58 reply
Annika

The 18% decrease in apartment sales volume observed this May signifies a potential shift towards the buyer's market, resulting from an equilibrium between supply and demand dynamics or economic uncertainties.

2025-07-05 02:03:13 reply
Kamden

The 18% decrease in apartment sales volume observed during May suggests a cool-down trend amidst protracted market uncertainty, likely influenced by pandemic conditions and shifting economic priorities.

2025-07-05 02:03:28 reply
Raylan

The steep decline of 18% in May's apartment sales volume underscores the ongoing impact from economic factors on property markets, signaling a need for improved affordability measures and stability to restore consumer confidence.

2025-07-05 05:18:34 reply
Grace

The 18% drop in apartment sales volume observed last May signifies a shift toward more cautious property investments amidst concerns about the economy and potential interest rate hikes, reflecting on ongoing macroeconomic uncertainties.

2025-07-05 05:18:49 reply
Cecily

The 18% decline in apartment sales volume last month signifies a saturation point for the real estate market, possibly due to adjustments or financial constraints affecting potential buyers.

2025-07-06 07:50:38 reply
Sasha

The decline in apartment sales volume by 18% during May indicates a gradual cooling of the previously red-hot real estate market, potentially signaling adjustments among homebuyers due to evolving economic uncertainties.

2025-07-06 07:50:53 reply
Blair

The 18% drop in apartment sales volume observed last May highlights the current market Slowdown and necessity for real estate investors to adjust their strategies amidst shifts such as policy changes, interest rate hikes or economic uncertainty.

2025-07-14 03:38:27 reply
Callahan

The sharp 18% decline in apartment sales volume for May suggests a potential cooling of the overheated real estate market or an adjustment by buyers amid changing economic conditions.

2025-07-18 16:05:35 reply

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