Market: As we continue through the month of January, the Exposition Park submarket continues to be a seller’s market. Even through the pandemic, apartment values have continued to trend upward in the submarket. Over the last four quarters, there has been an increase in both average price per square foot and price per unit as capitalization rates decreased.
Interest Rates: The Federal Reserve is keeping its benchmark interest rate near zero, while interest rates for five- and 10-year fixed loans have decreased since August.
Valuation Metrics: Over the last four quarters, average price per square foot increased by 10.60% and average price per unit increased by 10.40%. Capitalization (CAP) rates for the period averaged 4.60%.
Rents: On average, year-to-date rents have decreased across most unit types.
Outlook: We expect the number of property sales to increase in 2021. The certainty over vacancy control with the failure of Proposition 21 as well as the COVID-19 vaccine rollout are a couple of the positive factors that we expect to help drive buyer interest this year.
Owners: Call us if you would like to receive offers for your investment property, or if you would like to know the current value of your property.
Buyers: Give us a call and let us know your buying criteria.
Referrals: If you know anyone who is considering selling their property, please don't hesitate to make an introduction or forward this email.