Thoughts on Multi-family RE Market? 2017 vs 2016

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Thoughts on Multi-family RE Market? 2017 vs 2016

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Investor · Philadelphia, PA · Member since 2017 · 97 posts · 30 votes

Hey Guys!

What's going on in your market for Multi-family? Where do you see the prices trending? What do you see people doing differently today (This year) compared to what they were doing last year? How does SFH compare to Multi-family in your market?

Looking forward to seeing the comparison/ differences nation wide..


Key Words: Philadelphia, New Jersey, South Jersey, New York, Miami, Florida, Delaware, Pennsylvania, South Jersey, Maryland, Baltimore, California, Denver, Chicago, Phoenix, Washington DC, Camden, Manhattan   

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  • Zachary Corum
    Investor · Factoryville, PA · Member since 2016 · 51 posts · 26 votes
    9y

    Ill Bite, I bought my first 3 Unit in the North East Pennsylvania Market last year in December and have had great success with it so far. Since I do not have access to the MLS have been recording properties as they are sold in my farm in the Luzerne County. I have pulled most of the information from Realtor.com and update it once a month. This data only includes the 19 small to mid size cities and towns I am interested having investments in.

    2016 Multi-Family Sales

    2 Unit Apartment Buildings in my Farm took a dive last year, would have been a good time to buy a 2 unit building but I opted for a 3 unit with better cash flow.

    59 (2)unit properties sold

    • Red line is the sale price, Blue line is the list price
    • The average sale price for the year was close to $65,000
    • The average Discount from list price averaged $9,000
    • Only 10 of the sold properties were purchased at list price or above
    • Price per unit was a whopping average of $28,654

    3 Unit Apartment buildings in my Farm did a little better on price the building I purchased was the last 3 unit in December in 2016 at a 10% discount from the list price and about 11k below market rate at that time.

    13 (3)unit Buildings sold

    • Red line is sales and the blue line is discount from list price.
    • The average sale price for the year was close to $83,000
    • The average discount from list price was $9,000
    • Only 1 building was purchased at 5k above list price
    • The average price per unit was $27,487

    2017 Multi-Family Sales

    2 Unit apartment buildings in my farm this year are not suffering as much of a hit to price this year although the average price has continued to drop but only slightly.

    62 (2)unit Buildings sold

    • Red line is sales and the blue line is discount from list price.
    • The average sale price so far is $58,000
    • The average discount from list price so far is $7,141
    • 7 Buildings have sold above list price
    • The average price per unit was $30,000

    3 Unit apartment buildings 2017

    10 (3)unit Building sold

    • Red line is sales and the blue line is discount from list price.
    • The average sale price so far is $75,000
    • The average discount from list price so far is $8,723
    • 1 building has sold at list price
    • The average price per unit is $25,175

    Synopsis

    Although there are some minor fluctuations in the NEPA Multi-family market the next chart shows all Multi-Family sales year over year which shows the relative stability of the market.  Appreciation is not something you need to worry about here in NEPA ;-) Cash flow is king.

    2-6 Units in the whole farm over two years

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