Three former industrial cities that lie north of Boston, Lawrence, Lowell, &Â Lynn,Â have lots of multifamily housing units forÂ investors. Â Some investors who cannot afford to buy the more expensive multifamily housing closer to Boston will be able to find investments in these cities. Â This will be the first in a series of posts where I examine how these markets are doing. Â All data in this post, unless other specified, is based on information provided to and compiled by MLS Property Information Network, Inc. (MLSPIN) and extracted on November 16, 2010.
In this post, I'll look at how the multi-family housing market has fared as a whole. Â For this, I took all multifamily sales found in MLSPIN and graphed the results from 1997 to 2010.
Over the time covered in this study, Lawrence saw the largest percentage rise in average sale price of 470% from 1997 to the peak of the market in 2005. Â Lowell and Lynn saw rises of 385% and 423% respectively. Â Though Lowell saw the smallest percentage rise in price, the average sales price has fell the least. Â Average sale prices in 2010 are 54% of the level in 2005. Â Lawrence and Lynn are 51% and 47% respectively.
Next, I took at look at the average number of days it took for a multifamily house to sell.
Just as in many other markets I've looked at, multifamily houses are sitting on the market longer than during the days of the real estate boom but they have fallen significantly from the high right before and during the financial crisis in 2008.
In my next post, I'll take a look specifically at the 3 family housing market in these cities. Â Following that, I'll take a look at the rental market for 3 family houses. Â Stay tuned!
Note: The data in this post has been corrected on Nov. 18, 2010. Â The original analysis period ran from JanuaryÂ 31 rather than January 1 of each year.