Market: As we hit the middle of October, the Palms/Mar Vista multi-family market is beginning to cool off. Over the last four quarters, the average price per square foot and price per unit both decreased and average capitalization rates increased.
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 and average price per unit decreased by 4.8% and 12.1% respectively. Capitalization (CAP) rates for the period averaged 3.79%.
Rents: On average, year-to-date rents have decreased across almost all unit types, while year-over-year occupancy has decreased by 3.70%.
Outlook: With the Proposition 21 vote coming up in just a few weeks on November 3rd, apartment owners in Los Angeles are again facing the prospect of vacancy control. The outlook for the immediate and longer term future of the apartment market greatly hinges on the outcome of this vote.
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.