Market: As we near the end of August 2020, the Koreatown multifamily market continues to see demand from buyers as values hold strong. Over the last four quarters, the average price per square foot and price per unit increased, while capitalization rates have also increased as buyers seek higher yields.
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 July.
Valuation Metrics: Average price per square foot increased by 9.0% and average price per unit increased by 10.8% over the last four quarters. Capitalization (CAP) rates for the period averaged 4.4%.
Rents: On average, year-to-date rents have decreased slightly across all unit types, while year-over-year occupancy has decreased by 1.5%.
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 we don’t see a major shift in COVID-19 cases.
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.
