Each quarter we break down all the multi-family properties that were sold in Essex County for our quarterly Multi-Family Market Reports. One of the trends we like to look at is how various property types are doing in comparison. Some quarters, duplexes and 3-families are hot, other times it is larger apartment buildings with more than 5 units. Understanding these trends can help you become a better investor, seller or landlord.
Nationally, the Market is Steady
First, let’s take a look at the broader U.S. Market as a whole. Year-to-date investment in the multi-family real estate for 2017 has been 94.2 Billion dollars. As a comparison to 2016, it is down slightly (.02%). Rent growth per unit is up 2.4%.
The biggest sector for return on investment nationwide is in non-urban and suburban sectors were investors saw a 17.8% increase in REIT’s (REITs, or real estate investment trusts, are companies that own or finance income-producing real estate in a range of property sectors).
Multi-Family Sales by Number of Units for Q3 in Essex County.
- Two-Family Units
In q3, there were 212 Two-families sold in Essex County. They had an average sale price of $411,000 and were on the market an average of 20 days. This was a 4% increase in price over Q2.
- Three-Unit Properties
For three-families, there were 75 units sold at an average price of $450,000. The average time on the market was 26 days. This is a lot faster than the average of 42 days in Q2.
- Four-Unit Properties
There were 17 Four-unit properties were sold at an average of 485,000 during the third quarter. This is actually an 11% reduction in price over the previous quarter. The average time on the market remained about 30 days.
- 5+ Units
For properties with 5 units or more, the average price went up almost 20% to $660,000! While inventory moved slower at an average of 51 days on the market. A total of 15 of these 5+ unit properties were sold in Q3 in Essex County.
Download a Free Copy of our Essex County Multi-Family Market Report for Q3
Want to learn more about the specifics of the Multi-family Market? Download our free Multi-family Market report below.