If you are an apartment owner in Long Beach, an active apartment buyer, or someone thinking of investing in multifamily units, it is essential to have the necessary information to make the best investment decisions. More specifically, the market intelligence and statistics that we have compiled for you are vital in determining whether you should buy, sell, hold, or refinance. This information is not available anywhere else, and we are the ONLY firm that has these metrics, as our team of in-house analysts have generated these statistics from the ground up.
1. Average 4-Plex Sales Price
- 2016 – $867,000
- 2017 – $969,000 (approx. +11.75% from 2016)
- 2018 – $1,014,000 (approx. 4.61% from 2017)
- 2019 YTD (Year-To-Date)- $1,150,000 (approx. 13.45% from 2018)
- 2019 has seen the largest year-over-year increase in recent years.
- Some economic drivers that have led to these increases in average sales price include low unemployment, historically low interest rates, high consumer confidence, and continued population growth.
- There has been a 32% total increase in average sales price from 2016 to 2019.
- If you are an owner and are unsure of how to time the market and sell at the top, we just had the largest increase in appreciation, indicating that this may be a great time to sell.
- If you are buyer wondering if this is a good time to purchase, make note that interest rates are still low and we still have a housing shortage, which means the demand for housing will remain high well into the future. This shows that it is still a good time to make an investment.
2.Sales Volume for 4-Plexes
- 2016 – 111 sold
- 2017 – 104 sold
- 2018 – 79 sold
- 2019 YTD – 89 sold
- While 2019 was had fewer total sales compared to 2016 and 2017, there was an increase from 2018.
- What is interesting to note, although we have the highest average sales price for 4-unit properties we have ever had at $1,000,000+ there was still a significant amount of sales. This proves that demand for this type of asset is still strong.
3.Average Days on Market for 4-Plexes
- 2016 – 74 days
- 2017 – 45 days
- 2018 – 44 days
- 2019 YTD – 62 days
- If you are seller that is hoping to time the market and sell at the top, let’s take a closer look at what the numbers are telling us:
Average sales price for 4-unit properties is the highest ever at $1,150,000, the demand is strong with 89 sales so far, and it only takes 62 days to sell.
4. Predictions for 2020
- The biggest difference heading into 2020 will be rent control.
- Many owners are still unaware that this law has passed.
- As owners find out, some might “throw in the towel” and decide this is the time to sell. Therefore, we do predict an increase in inventory.
- In speaking with our investor clients, there is some hesitation resulting from the new rent control relocation fees and rent caps.
- What could potentially happen? An increase in inventory, combined with buyer pull-back could cause a reduction in sales prices.
- Don’t forget, it is also an election year. Many time, owners and investors choose to hold off until after the election to see how it impacts the economy.