Market: As we kick off the start to a new year, the North Hollywood submarket has seen multifamily values remain relatively flat. Over the last four quarters, the average price per square foot and price per unit slightly decreased and capitalization rates saw a very small increase.
Interest Rates: The Federal Reserve is keeping its benchmark interest rate near zero, while interest rates for five- and 10-year fixed loans have steadily decreased since September 2020.
Valuation Metrics: Over the last four quarters, average price per square foot decreased by 0.30% and average price per unit decreased by 2.50%. Capitalization (CAP) rates for the period averaged 4.46%.
Rents: On average, year-to-date rents have decreased across all 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 and the COVID 19 vaccine rollout are a few 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.