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2019 2nd Quarter Market Study – Greater South Bay Area

2019 2nd Quarter Market Study – Greater South Bay Area

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Hello Investors!

The Buckingham Investments Q2 2019 market study has been released!  This information is crucial for keeping up to date of the local market and I am excited to offer the data to all of my clients and extended network.

Each quarter we review all the closed multifamily sales in our market area, verify the numbers and compile the data.  For a detailed spreadsheet version of this study that shows neighborhood and property level data, please respond to this email.  I hope that this market study proves to be a valuable resource for you.

 

So, what do these numbers mean?

Q2 2019 reveals that our local multifamily market continues to remain resilient.  Cap rates, price per square foot and sales volume have increased back closer to Q4 levels.  This once again demonstrates that the Q1 pricing levels and moderately reduced sales activity is nothing more than the typical seasonality in the market and not the beginnings of a broader market downturn.
Q2 volume remains consistent with previous quarters and years.  Perhaps higher interest rates in Q1 were responsible for the price improvement.  As anticipated, the recent lowering of interest rates has brought cap rates back down a bit for Q2.
Overall the numbers indicate that the South Bay multifamily market is still performing well.  If you are curious about how much your property is worth, looking to expand your portfolio or want to build a long term investment plan, feel free to reach out to us today!
– Jeffrey Isenberg