Apartment market continues improvements

Apartment sales volumes have improved.

A report from the National Multi Housing Council showed that property management companies experienced improvements in many aspects of the apartment market during the second quarter.

NMHC's Quarterly Survey of Apartment Market conditions explained that 24 percent of those polled experienced an increase in sales volume. This was a significant improvement to the previous quarter, where 16 percent of those polled had a jump in sales. In addition, market tightness increased as 55 percent felt that their markets had done this. Equity financing shrank slightly, but this was still well above the average index level, which denoted a successful quarter.

"Even as new construction ramps up, higher demand for apartment residences still outstrips new supply with no letup in sight," said Mark Obrinsky, chief economist of the National Multi Housing Council. "Despite the need for new apartments, acquisition and construction finance remains constrained in all but the best properties in the top markets."

The report added that debt financing rose to a level not seen in two years. A total of 2 percent felt borrowing conditions were worse than the previous quarter, which helped the figure remain below 10 percent for the sixth quarter running.

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