Across all ownership structures, deal volume is down an average of 33% from May 2022, although inventory is also down, an average of 19%, mitigating the effect on absorption rate. Also, May 2022 activity was some of the highest on record.
I have seen slower activity in May, largely the result of interest rates having risen about six basis points out of concern for the debt-ceiling negotiations. Now that those negotiations have concluded I expect both rates and market activity to return to the norm, although that will likely take months.
An interesting side effect of slower activity: while newer buyers I’ve met only recently show no urgency, buyers I’ve been working with for longer who were priced out of the 2022 market are taking advantage of current conditions and getting excellent deals for themselves.