14 November 2008
Multifamily Investment Sales Surge in LA
As prices for Multi-Family properties in Los Angeles potentially reached their bottom in the third quarter, San Francisco came close to bottoming out, while New York City remained far from it, according to the Investment Properties Q3 2008 report. The report looks at multifamily investment sales only.
The findings are positive for the Los Angeles market; and very soon, investors are going to come here and start buying up the inventory.
Los Angeles is the only city that had an increase in the number of sales compared to both Q3 2007 and Q2 2008. This was driven by the large number of distressed property sales (trustee sales, notices of default or REO's) in this market. Fifty-four percent of all sold properties in the third quarter of 2008 were in distress this year.
Los Angeles, as well as San Francisco, experienced significant median price declines, well below their previous two-year record lows. Compared to the third quarter of 2007, the median sale price fell 35.1 percent in Los Angeles and 4.6 percent in San Francisco. The median sale price per unit fell 25.4 percent in Los Angeles and 8.5 percent in San Francisco, when compared to Q3 2007.
In San Francisco, the number of closed transactions for multi-unit investment properties was down 3.2 percent compared to Q2 2008, and down 9 percent compared to Q3 2007. San Francisco is looking pretty attractive now-prices are not quite at the bottom-but getting there. There is cash on the sidelines, so as soon as prices drop, transactions will start rolling in.
Now is the time to buy Income producing property in the Los Angeles area. Loans are available and the market is primed to go up soon.
Please contact me, Thomas Ray, for more information on what me and my team are seeing as the best values now!
My Site: www.LAexclusiveProperty.com
Filed under: Market Conditions, Buyers Market, Trends, Multi-Family, Apartment Buildings, Income Property
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