Market: As we hit the middle of August 2020, the Santa Monica multifamily market continues to see demand from buyers as values still hold strong. Over the last four quarters, the average price per square foot increased despite an uptick in capitalization rates and a decrease in price per unit.
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 June.
Valuation Metrics: Average price per square foot increased by 6.5% and average price per unit decreased by 7.3% over the last four quarters. Capitalization (CAP) rates for the period averaged 3.88%.
Rents: On average, year-to-date rents have decreased across all unit types, while year-over-year occupancy has decreased by 2.7%.
Outlook: We are seeing an uptick in demand for well-located properties now that parts of the economy are re-opening and expect it to continue as long as COVID-19 cases remain at manageable levels.
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.