The 3rd Quarter of 2024 saw the most activity thus far as investors moved off the sidelines after a sluggish first half of the year. There were 10 transactions with a total sales volume that punched in at $38.44M up 102.63% from Q2. The median price per unit dropped by 11.15% from Q2 to $288K / unit. The median CAP rate of the sales in Q3 saw an increase of 10.14% from Q2 to 4.56%
In August 2024, there were just 2 properties that sold for a total volume of $5.99M a sluggish month. 2810 Varsity Circle, a 6-unit building, went into escrow after being on the market for only 8 days. Originally listed at $1.8M but sold for $1.7M or $283K/unit and a 4.68% cap rate.
In July 2024, five properties traded for a total volume of $24.19M accounting for 44.5% of the year-to-date volume. The median $/ unit was $293K with a high and low of $350k and $258k respectively. The median cap rate of these deals was 4.74%.
Activity in Q2 picked up considerably with improvements to the metrics that we track: Volume, price per unit, and median cap rate. There was a total of 8 properties that traded throughout Q2-2024 for a total consideration of $18.97M an increase of 69.38% Quarter over Quarter (QoQ).
There was a total of 3 properties that traded in May ’24 for a total of $8.19M. Total market volume through May ’24 is $28.35M as compared to $85.46M through May of ’23 a decrease of 66.83% year-over year. The average days on market for the deals that closed was 178 days, with the quickest sale being on market for 59 days before it went into escrow. The median price per unit is $335,714 and the average CAP rate of deals that closed in May was 4.07%.Â
In April ’24, there were 4 properties that traded for $8.955M as the market plays catch up to its slow start to the year. April’s sales volume alone accounted for 44.43% of the total market volume through April. To put the market velocity into perspective, the market is still behind 2023’s pace by $48.58M.
Hampered by the hurdles that investors are facing such as the increase in costs to financing, construction, and insurance, sales volume in Q1-2024 totaled $11.2M, a significant decrease of 65.19% as compared to the Q4-2023 sales volume of $32.17M.
Sales volume stumbled out of the gates to start 2024 off with no recorded sales in January and only one transaction in February. Since the conclusion of 2023 and continuing into 2024, it is evident that market velocity has been impacted by the rise in interest rates.
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