Source: Multi Housing News
Compared to second quarter 2007, Los Angeles, New York and San Francisco saw major setbacks in the number of sales, according to Investment Properties Report, Q2 2008, a quarterly analysis of multifamily homes in the three regions conducted by PropertyShark.com, based in New York.
“The biggest problem causing the setbacks in the number of sales is the lack of financing for properties, which means there are fewer buyers in the market,” Bill Staniford, CEO, PropertyShark.com, tells MHN. “It is the basic malaise in the economy right now and people are holding onto their properties because they know they will not get the right value.”
Experiencing the steepest decline among the three regions, New York City was down 29.4 percent. In Q2 2008, New York City saw the lowest value for closed multifamily building transactions over a two-year time period while Los Angeles and San Francisco saw a slight increase from Q1 2008, when both regions experienced two-year lows.
New York City prices have reverted back to 2006 levels and all price indicators continued their downward trend with the median sale price down 7.7 percent, and the median price per sq. ft. down 4.7 percent, compared to Q2 2007.
In Manhattan, though prices stayed up with the median price per sq. ft. reaching a two-year high in this quarter, sales transaction volume was down considerably. There were 86 closed transactions in Manhattan during the second quarter of 2008, down 13.1 percent from Q1 2008, and down 51.1 percent in comparison to Q2 2007. The number of sales dropped dramatically hitting a two-year low for all three groups studied in this report (two- to four-family buildings, five plus family buildings, mixed-use buildings).
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