2020 Late Summer Newsletter
It’s been quite the year for multifamily investments. At the time of our last Newsletter in June 2020, sales were slow and the average sales price was $417k. In just 3 months, that number has risen 38%!
Interestingly, as of August 31, 2019, we had 15 sales and 16 pending sales. In that same timeframe this year, we have 15 sales and 16 pending sales, showing us the number of properties trading hands has remained constant. Even so, proper pricing is very important right now, as 6 of the 16 currently active listings have been on the market from 107-211 days, averaging 168.
To give a broader perspective of the market, the charts below compare January 1 through August 31 of 2019 to 2020. As you can see, prices have skyrocketed, properties are not lingering, and buyers are anxious to close.
Given these numbers, the investment / multifamily market in SLT is extremely vibrant right now.
Yet even with these rosy number, as of September 1 we have new COVID related laws in both CA and NV regarding rent, and moratoriums on evictions, which continue to add unknowns to the market:
CALIFORNIA: When a tenant has not paid rent for any period between March 1, 2020, and January 31, 2021, the COVID-19 Tenant Relief Act of 2020 (“Rent Relief Law”) will allow most residential tenants to remain in the rental property through January of 2021 as long as the tenant makes a declaration under penalty of perjury that they are unable to pay their rent or meet other financial obligations because of circumstances related to the COVID-19 pandemic.
For rent that comes due between September 1, 2020, and January 31, 2021, the tenant is responsible for paying at least 25%. However, that amount need only be paid by January 31, 2021. Otherwise, the tenant would be at risk of being evicted for non-payment of rent through an unlawful detainer process, but not before February 1, 2021. After January 31, 2021, and with the exception of the 25% of rent owed from September through January, the landlord will not be able to base an unlawful detainer action on a demand for payment of rent that came due during any time between March 1, 2020, and January 31, 2021.
NEVADA: On September 1, Governor Sisolak extended for 45 days the prohibition on evictions based on non-payment of rent. Other types of evictions such as those due to damage, crime or danger to a tenant or other occupant, were lifted August 1, and are not affected by this recent extension. Further clarity is expected.
NOW IS A PRIME TIME
TO SELL YOUR INVESTMENT PROPERTY!
CALL TODAY FOR A FREE MARKET ANALYSIS
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Here’s to a healthy, and safe, 2020!