According to information in the latest Realtors® Confidence Index, cash sales were 31 percent of residential sales in February. The high preponderance of all-cash sales appears to be due to a number of factors: Unrealistically high loan underwriting standards, a significant level of investor participation in the market, and sales of properties as second homes.

The first quarter of this year brought signs of a strengthening economy.  With improving employment conditions, household formation is expected to grow.  Coupled with lingering issues in the housing market, these factors are boosting the performance of the apartment sector.

Demand for apartments, as measured by net absorption, posted a good year in 2011.  The trend continues into the first quarter of 2012, with net absorption at a positive 36,484 units, according to REIS. Vacancy rates declined to 4.9 percent for the quarter. In addition, rent growth continued on an upward trajectory, with effective rents rising 0.9 percent during the first quarter, the fastest rate of growth since 2008. Nationally, effective rents were at $1,018 per month.