Bridgeport Investment Properties - Yearend Update 2007
We define Investment Properties as those Multi Family Homes with 2 to 4 Rental units. The units may have 1,2 or 3 Bedrooms - generally no more. The owner may occupy one of the units. We can see from the numbers that this market segment has seen almost a 60% drop off in unit sales in the last 24 months. In addition, this drop off has been accompanied by a 7% decline in both Median and Average Sales Price.
This is perhaps one of the best local examples of the impact of the Subprime Mortgage Crisis. Many of these properties in recent years have been sold with one hundred percent financing and some closing costs rolled into the price. This allowed many a first time buyer to own a home and have some rental income to pay the mortgage. With the tightening credit, many of the target buyers no longer qualify and this leads to a very significant decline in Sales.
As with all products and markets, there is always opportunity. If an investor or buyer has access to capital, then there are plenty of options and some very good deals to be had.
As of December 31 | 2007 | 2006 | 07 vs 06 | 2005 | 07 vs 05 |
Closes | 324 | 608 | -47% | 767 | -58% |
Median Price | $295,000 | $318,000 | -7% | $299,000 | -1% |
Avg Selling Price | $294,856 | $317,504 | -7% | $296,058 | 0% |
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