Hello Investors!
The Buckingham Investments Q4 2018 market study has just been released! This information is crucial for keeping up to date of the local market and I am excited to offer the data to all of my clients and extended network.
Each quarter we review all the closed multifamily sales in our market area, verify the numbers and compile the data. For a detailed spreadsheet version of this study that shows neighborhood and property level data, please respond to this email. I hope that this market study proves to be a valuable resource for you.
So, what do these numbers mean?
Q4 2018 showed us more of the same. Low cap rates and high GRMs indicate values in much of our market. Selected neighborhoods in transition zones were well-priced compared to the broader market. Interestingly, although value indicators remained basically flat throughout 2018, average price per square foot rose to $407 for the year ($393 in Q4) vs. $369 in 2017, a 10.3% increase year over year. This is most likely explained by continued increases in rents. Although rising interest rates were expected to apply downward pressure to prices, our market did not follow that expectation.
Overall the numbers indicate that the multifamily market is still strong in our local area. If you are curious about how much your property is worth, looking to expand your portfolio or want to build a long term investment plan, feel free to reach out to me today!
