Last Friday we met for our Movers and Shakers 1/1/2016 at Dennys. The consensus on the Real Estate market for 2016 is that:
New listings are not coming on the market quick enough to subdue price increases and that will continue. It’s a Sellers Market.
Rentals are scarce and Landlords will continue to raise rents. This may drive renters to purchase while interest rates are still low. It’s a Landlords Market.
Q32015 Single Family Listings 112, Avg List – $388,518. DOM – 55.62, Avg Sale – $388,078.
Q42015 Single Family Listings 118, Avg List – $381,720. DOM – 60.75, Avg Sale – $379,510.
1/1/2016 Single Family Listings 24, Avg List – $360,300. DOM 63.50
We analyzed a 3 family in Salem that seemed underpriced. First we used the Comps (comparable recent Sold properties similar to our Subject property and within a 1 mile radius). Next we looked at repairs and potential profit to structure a Strategy and Price. Finally we looked at Condo (Comps) similar to each of the 3 Apartments to value this deal for “Highest and Best Use”.
Not a bad deal, Good Luck Rich!