If you are wondering how the real estate fourplex market is did in the first quarter of 2021, there’s one word to describe it: phenomenal. All the numbers we have been tracking have improved compared to the first quarter of 2020. It is also important to mention that the first quarter of 2020 occurred before the pandemic period, so these numbers are even more significant because of the new factors brought by the COVID-19 pandemic ever since March of 2020 until now.
In this 2021 Quarter 1 Fourplex Market Update, we will cover:
- Number of Sales
- Average Sales Price
- Average Days on Market
- Average Active Inventory
Number of Fourplex Sales
Quarter 1 of 2020: 19 Fourplexes Sold
Quarter 1 of 2021: 25 Fourplexes Sold (+32% from Quarter 1 of 2020)
Sage Advice: Last year during 2020, we experienced a unique year in which the market was affected by a pandemic. However, before last year we saw an average of 100 fourplexes sold per year. Based on our data, I believe that we will be right back on track in 2021, which is incredible for the multifamily real estate market.
Average Sales Price
Quarter 1 of 2020: $1,165,000
Quarter 1 of 2021: $1,188,300 (+2% from Quarter 1 of 2020)
Sage Advice: For investors thinking about selling or buying a property, this is a super positive outlook as property values may still continue to appreciate.
Average Days on Market
Quarter 1 of 2020: 56 days
Quarter 1 of 2021: 52 days (-7% from Quarter 1 of 2020)
Sage Advice: Properties are selling quicker. They’re selling for more, and there are more sales than ever before. This is a sign that the multifamily market is hot.
Average Active Inventory
Quarter 1 of 2020: 34 Fourplexes
Quarter 1 of 2021: 27 Fourplexes (-20% from Quarter 1 of 2020)
Sage Advice: There are less options to choose from in the market, which signals that there is a lot of movement going on. There is excitement and confidence in the economy. The biggest driver of movement has and still will be the presence of low interest rates, which may remain low throughout 2021 and possibly into the next year.