09/27/2018
Multi-Family Values Slip in Early 2018, Rebounds Slowly
2018 has shown that the multi-family markets are not impervious to negative changes in the market. For the first time in this real estate cycle, all multi-family markets have shown some type of negative movement in 2018. The trend began early in the second quarter of 2018, when investors suddenly left the market place, making sales of all multi-family products more difficult. Increased interest rates are also taking a toll on the market, with another .25% rate hike expected in late September, and another again in December.
Commercial Multi-Family - As expected, the Commercial Multi-Family sector was the first to show signs of a changing market. During the first 6 months of 2018 the Average Price/Unit dropped $38,000 from its 2017 figures. However, this is the only sector that has seen growth in the last 3 months. Investors have become active again in purchasing these types of assets and have driven the Average Price/Unit up $18,000 since July 2018. The market currently sits at an Average Price/Unit of $347,000.
This real estate cycle is likely coming to a close as values struggle to keep the pace of the lasts 8 years of growth. If you plan on selling in this cycle, now is the time. Strong agents specializing in your product with comprehensive marketing plans are more important now than ever. Any agent can sell your property in good markets, only good agents can get you top dollar as the markets slip.
Current ACTIVE Listings: 33
Properties ACTIVE for more than 30 days: 0
