MULTI-FAMILY HOUSING PRICES ARE PEAKING NATIONWIDE Professor Mueller’s latest real estate cycle monitor analysis shows that in all of the 55 MSAs he studies, apartments are at the very peak of their cycle, and on the verge of turning downward as supply pipelines come on stream, outstripping demand.  A few cities have tipped over already and are seeing negative rent growth, and in one notable case, Houston, the multi-family residential property sector is close to being recessionary.  POSSIBLE 25% SPIKE IN PRICING IF TAX CHANGES IMPLEMENTED Of course, there could be a dramatic spike in values of all these properties if the tax breaks Professor Mueller discussed come to fruition, but we will have to wait see how that plays out in Washington. THREE KEYS TO PROTECTING FROM REAL ESTATE DOWNSIDE And of course, it is worth being reminded of the three keys to weathering another real estate storm, whenever it might come: quality buildings, good tenants, and low leverage.  These may seem obvious, but as Warren Buffet says, ‘only when the tide goes out do you discover who’s been swimming naked’, Taking into account the stage of the cycle as we are now, especially in multi-family, the timing might be good for taking stock and making sure that all of your assets are covered.