For those involved in multi-family real estate, a market shift has brought about both challenges and opportunities. In today’s blog post (and video), Juan Huizar, president of Sage Real Estate discusses the shifting trends in multi-family real estate investment. From pricing adjustments to changes in sales volume and market dynamics, we aim to provide a comprehensive overview of the current state of the multi-family investment landscape.
A Closer Look at the Data
For the first time in our data tracking history, we see a price adjustment – a 4.3% decrease in multi-family property prices. While the percentage might not seem substantial, it’s a significant event within the context of multi-family investing. The new average sales price for a fourplex in Long Beach now hovers around $1,400,000. The range in prices is diverse, with the lowest recorded sale at approximately $935,000 and the highest at slightly above $2 million – despite the decrease in pricing, the average remains around $1.4 million. Also, we see a decline in sales volume by 32%, accompanied by a 30% increase in the days on market.
Opportunity
Our data-backed insights suggest that the current market scenario creates a favorable environment for investors seeking multi-family properties. The combination of decreased pricing, reduced sales volume, and extended days on the market offers investors leverage in negotiations.
In the realm of real estate investment, change is the only constant. The evolving landscape of multi-family properties presents investors with an array of opportunities. Through Juan Huizar’s analysis, it’s evident that while the market might be shifting, astute investors can find their footing and capitalize on the changing dynamics.
By partnering with experienced real estate professionals, investors can navigate these fluctuations to secure the best prices and terms for their multi-family investment. For those ready to make a move, now might just be the perfect time to embark on or expand your multi-family investment journey.”
