Multifamily home sales fell 18.9% and the median sales price rose to $425,000, a 19.7% increase. The multifamily home segment flourished last year as investors, often armed with cash, bought up properties to capitalize on rising rents.
Unlike the last market downturn which was marred by weak mortgage requirements and subprime lending, the number of distressed properties – foreclosures and short sales - fell among single-family and multi-family homes and stayed the same among condominium purchases.
Multifamily home sales hit the highest median sales price in April, at $425,000, a 19.7% year-over-year gain. Activity also showed the sharpest decline in the multifamily home market. Completed sales fell 18% while properties put under contract but not closed in April fell 20.5% from the prior year.
Inventory dropped the most on the multifamily home front, falling 48.6% from March of 2021. Sales fell by 16.7% and median price rose 16.8% to $397,000.
Multifamily homes showed the largest drop in supply in February, falling 52.8% in one year and leading to the lowest supply of all property types. Sales fell by 3.9% and those under contract but not completed by the end of February dropped 3.4%. The median price of $410,000 represented a 22.4% gain from 12 months earlier.
With the stock market wavering, investor interest in real estate remains strong. Sales in the investor-laden multifamily home market rose 17.3% from January 2021 to January of this year, while the median sales price rose to $399,900, a 21.2% gain.
Days on market dropped from 37 to 30. Cash and investors with strong financial qualifications created intense competition and quick turnover in the market.
Through the end of the year, multifamily homes remained a hot commodity, due to factors like rising rents and the ability to have rental income offset the mortgage. At $390,000, the median sales price of multifamily homes in Rhode Island reached the highest monthly price on record, rising above those of both single-family homes and condominiums.
Closed sales of multifamily homes rose 3.8 percent last month and pending sales – those sales expected to close in January or February - increased 11.1 percent. Inventory fell from January 2020 by 48 percent.
The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 92.0 percent of apartment households made a full or partial rent payment in December 2021 in its survey of 11.8 million units of professionally managed apartment units across the country.
Multifamily home closings increased 4.7 percent from November 2020. It also experienced an increase in median price. The median price of multifamily homes rose to $385,000, a jump of 16.6 percent. It also saw a year-over-year increase in contracts signed but not completed in November, the bulk of which should close in December or January.
A momentous night, as the youngest member of our team Robert Fox,
is being sworn in as a director for the Rhode Island Commercial and Appraisal Board of Realtors.
The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 77.1% of apartment households made a full or partial rent payment by December 6 in its survey of 11.8 million units of professionally managed apartment units across the country.
This is a 1.7% point increase from the share who paid rent through December 6, 2020 and compares to 83.2% that had been paid by December 6, 2019. This data encompasses a wide variety of market-rate rental properties across the United States, which can vary by size, type and average rental price.
The December 2021 Rent Payment Tracker data are the last that will be released under the NMHC Rent Payment Tracker. Full month December rent payment numbers will be posted in January 2022.
The multifamily home market was the clear forerunner last month, with sales rising by 8.8 percent and the median price increasing 15.15 percent annually, to $380,000. An increase in pending sales of 11.2 percent also indicates that this sector of the market will remain strong in the months ahead. Throughout the year, the multifamily market held wide appeal to both investors and first-time homebuyers.
“Multifamily pricing continues to remain strong as a function of the continuing low interest rate environment and the minimal supply in the market. In short it’s a great time to sell, And still a great time to buy for longer-term investors,”
The number of listings was down in all sectors of the market. The conclusion of the mortgage forbearance moratorium and reduced worries about Covid, could help mitigate the shortage in the year ahead.
The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker shows 78.2% of apartment households made a full or partial rent payment by November 6 with its survey of 11.8 million units of apartments professionally managed throughout the country.
This is a 2.2% drop from the data portions who paid rent through November 6, 2020, and a 3.3% drop from November 6, 2019. This data includes a wide variety of market-rate rental properties across the United States, which can vary by size, type and average rental price.
Last month the multifamily home sale grew by 37.6% compared to September 2020 despite a hike in the median sales price of 16.2%. There is also an increase in the Pending contracts by 18.5% this seems to indicate that fast pace of sales will likely continue through year-end.
“At $380,000, the median price of a multifamily property is nearly as high as that of a single-family home, and in most cases, the returns are there. When you factor in the rents that will offset your mortgage, and the knowledge that rents are climbing because we simply don’t have enough units available, these properties appear to be one of the safer investments available for people to build wealth,” said D’Ettore.
The National Association of Realtors Chief Economist, Lawrence Yun has released a report last September which indicates that there is a strong demand for multifamily units seen throughout the country.
The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker shows 78.4% of apartment households made a full or partial rent payment in October 6 with its survey of 11.8 million units of apartments professionally managed throughout the country.
It’s a 1% drop through October 6, 2020, in comparison to 79.4% that had been paid by October 6, 2019.
"The uneven economic recovery and recent natural disasters are likely playing a role in the decrease of rent payments over the last month,” said Doug Bibby, NMHC President. “Accordingly, it is that much more urgent that rental assistance funds are distributed as quickly as possible to renters and housing providers in need."
Last month we saw an all-time high median sales price of multifamily homes, with a 23.4% increase from the prior year which is $382,500. Sales also continued to increase to 26.9%. Annual increases have reached double-digits for both median price and sales each month since February.
“Multifamily homes have been extremely popular for both first-time buyers looking to use rental income to lower their monthly obligation and for investors looking to capitalize on rising rents. Investors know that the availability of rentals is scarce and there’s not going to be an abundant supply of them anytime soon. That’s why they’re such an attractive commodity,” said D’Ettore.
The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker’s data shows 72% of apartment households did a full or partial rent payment by September 6 in its survey with 11.7 million units of apartments managed professionally throughout the country.
It is a 4.4% drop from the ones who paid rent through September 6, 2020, and to 81.2% that had been paid by September 6, 2019. The holiday weekend and recent natural disasters may have impact on today’s data.
Multifamily home sales nearly doubled, rising 94 percent and their median sales price rose 20 percent to $355,000. In summary it’s still a great time to be selling and maybe the last few months of buying at these low interest rates for long term investors.
The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 80.2 percent of apartment households made a full or partial rent payment by August 6 in its survey of 11.7 million units of professionally managed apartment units across the country.
This is a 0.9 percentage point increase from the share who paid rent through August 6, 2020
The Rhode Island Multifamily Median Price continued to climb reaching $365,000 for the month of June up 22% from last year. With just 421 multifamily properties for sale last month, Rhode Island’s available inventory rose by 14.4 percent since June of 2020. At the current rate of sales, Rhode Island’s inventory would be depleted in more than two months.