2nd Quarter 2010 Sales Disappoint
As most of you know, I have been keeping track of the 2-4 unit sales for many years. Last quarter I said “Don’t pop the champagne corks just yet, but the numbers seem to be stabilizing”. Well, store the bubbly for a little longer and buy more PBR, because the 2nd quarter sales figures went in the wrong direction.
For the list of all the 2nd quarter 2-4 unit sales, go to my old website at: http://www.keithabees.com/2010_comps.htm
2nd Quarter Summary
Total Sales were down from both last quarter (13%) and from the 2nd Quarter of 2009 (21%).
Volume shrank 15% from last quarter and 12% from the 2nd Quarter of 2009.
Average price per sale was up year over year but down from last quarter.
Average $/SF has stayed roughly the same at $78/SF
Days on Market went down again to about 83 days. DOM is a bright spot for individual owners trying to sell or thinking of selling.
Bank owned sales are about 47% of all sales in the 2nd quarter. Still a major influence on the market.
This has been an excellent opportunity for new investors to get into the business and for seasoned Investors to add their portfolios.
If you own a 2-4 unit and are unhappy with it for any reason (location, size, etc.) but want to stay in the business, take a look a today’s deals. You may have to take a hit on the current property but you can probably find a replacement that has the superior qualities that you are looking for.
Great prices and low interest rates generally show great cash flow. What’s the catch?
The days of the 5-10% down payment for investors of 2-4 units are history. Loans are available for buyers with good credit but require 25% down. Single family investments can be had with 20% down.
From the Sellers stand point, prices have fallen but we are seeing better qualified buyers than in the past. You have more of a chance to have an inspection or an appraisal issue on a deal than with a buyer that can’t qualify at the last minute.
Contact me if you have any real estate related questions or are interested in buying, selling or a 1031 tax-deferred exchange.
Keith A. Hurtubise
RE/MAX 100 Inc.
Certified Distressed Property Expert
Broker Associate
Real Estate Appraiser (Inactive)
710 Kipling St., Suite
110 Lakewood, CO 80215
303-232-4444 office
303-202-2221 direct
303-232-6919 fax office
303-942-3451 e-fax
303-808-8202 mobile
keithabees@aol.com
www.keithabees.com
