It is amazing how fast the first quarter of each year always seems to fly by. It is a non-stop, press on the gas pedal type of quarter and 2018 was no different than 2017; well, maybe?
In looking back at total transaction velocity for Phoenix Metro in 2017, there was on average about 260 closings a month (office, retail, industrial, land, apartments, etc.). When you look at 1Q18, that number is about 192 closings a month; a net drop of almost 26% just in transaction velocity. This is before a deep dive into any one product class; just the macro look at transaction velocity.
There are several reasons that could go into the drop in transaction velocity with one of the main issues being tax reform and the debates leading up to the final product. The banter back and forth in Washington definitely had the investment markets captivated as to what would ultimately be passed. Continue reading 1Q18 Officially in the Books