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Richard C. Lee's Blog

By Rich Lee | Agent in Boston, MA
  • Everett, MA Gross Rent Multipliers Similar to Levels 12 Years Ago

    Posted Under: Market Conditions in Everett, Home Buying in Everett, Home Selling in Everett  |  September 8, 2011 4:03 PM  |  1,556 views  |  No comments

    Everett, MA's average 3 unit multifamily income property Gross Rent Multiplier (GRM) is at a level that it was 12 years ago.  Let's first take a look at average rents to see what is going on.

    Everett, MA Average Rent Per Unit for 3 Family HousesEverett, MA Average Rent Per Unit for 3 Family Houses

    Rents might be rising in the Boston area but they are not rising for units in Everett's 3 unit multifamilies, typically triple deckers, according to MLS data.  The average rent landlords have been seeing per unit per month is $900 during 2011.  That's down from a height of $1,252 seen in 2003.

    Everett, MA 3 Family House Average Rent MultiplierEverett, MA 3 Family House Average Rent Multiplier

    Despite the lower rents, the GRM has remained at a low level, good for investors, due to the fall in triple decker prices.  We are seeing an average GRM of 8.7 during 2011.  That compares to a GRM of 8.8 back in 1999.  This GRM figure is the best you can go by due to the difficulty in getting accurate cap rate information for small multifamily income properties.

    Data in this post is based on information provided to and compiled by MLS Property Information Network, Inc.

  • Everett, MA 3 Family House Sale Prices Falling, Or Are They?

    Posted Under: Market Conditions in Everett, Home Buying in Everett, Home Selling in Everett  |  September 7, 2011 5:21 PM  |  1,524 views  |  No comments

    Everett, MA 3 unit multifamily income property prices seem to continue to fall.

    Everett, MA 3 Family Sales & Average Sale Price YTD (July)Everett, MA 3 Family Sales & Average Sale Price YTD (July)

    The average price for an Everett 3 family house is $281,000 through the end of July 2011.  That's down from an average of $312,710 YTD last year.  The median price went from $331,000 to $279,500.

    Everett, MA 3 Family House Average Cost Per Square Foot YTD (July)Everett, MA 3 Family House Average Cost Per Square Foot YTD (July)

    However, the average cost per square foot has been showing a steady increase of the last 3 years.  It has gone from $91 per square foot in 2009 to $96 per square foot in 2011.  Those in the multifamily income property business is renting space so this means that you are paying more for the space that you are renting out.

    A recent CNN article says that this is a good time to buy rental housing.  The question here is, "Is this a good time to buy rental housing in Everett, MA?"  Stay tuned to find out about Everett, MA rents and the gross rent multiplier!

  • Everett, MA Multifamily vs Single Family Market

    Posted Under: Market Conditions in Everett, Home Buying in Everett, Home Selling in Everett  |  January 5, 2011 5:35 AM  |  479 views  |  No comments

    Investors need to know that the single family housing market does not necessarily reflect the state of the multifamily housing market.  We looked at Cambridge, MA yesterday and will look at Everett, MA today.  Data in this post is based on information provided to and compiled by MLS Property Information Network, Inc. (MLSPIN).  All figures are year-to-date as of Dec. 1, 2010 for 2010 numbers.

    Everett, MA Average Sale Price of Three Family House vs Single FamilyEverett, MA Average Sale Price of Three Family House vs Single Family

    Everett, MA 3 unit multifamily house, mainly triple deckers, average sale prices have been on the decline since the market peak in 2005 at $535,207 just like Cambridge.  In 2010, the average sale price for a triple decker has been $308,541, which is 58% of the market peak.  The single family market has seen a less severe decline.  The average sale price for a Everett single family house was 343,125 at the peak in 2006 and $236,041 in 2010, which is 69% of the value at the peak.

    The price decline in triple deckers and residential multifamily houses in general is great news for new investors.  It is not enough that investors know that prices are down.  Investors need to know what gross rent multipliers and cap rates are.  Contact me today if you need help finding these numbers.

  • Everett, MA Offers Great Multifamily Investing Opportunities

    Posted Under: Market Conditions in Everett, Home Buying in Everett, Home Selling in Everett  |  November 30, 2010 1:02 PM  |  460 views  |  No comments

    Everett, MA's multifamily housing market has plateaued over the last 3 years.  Today, I look at the market for 2 family houses and 3 family houses, typically triple deckers, in Everett from the eyes of an investor.  All data in this post is based on information provided to and compiled by MLS Property Information Network, Inc. (MLSPIN) and extracted on November 29, 2010.  All 2010 numbers are year-to-date.

    Everett, MA 2 Family House Sales and Average Sale PriceEverett, MA 2 Family House Sales and Average Sale Price

    Sales and the average sales price of 2 family houses have fallen a lot from their lofty heights in 2005.  157 2 family houses sold at an average price of $469,541 in 2005.  In 2010, those numbers are at 70 and $278,256 respectively.

    Everett, MA 2 Family House Average Rent Per UnitEverett, MA 2 Family House Average Rent Per Unit

    Despite the fall in sales and average sale price, the average landlord for a 2 family house has not seen a significant fall or rise in rent received.  The average rent per unit is $1,123 per month in 2010.

    Everett, MA 2 Family House Average Rent MultiplierEverett, MA 2 Family House Average Rent Multiplier

    The most important chart for investors is the one above, where I show the rent multiplier.  The rent multiplier is at 10.3 in 2010.  That's a number that hasn't been seen since before 1998.  There are some great investing opportunities for you if you are looking to invest in Everett 2 families!

    Everett, MA 3 Family House Sales and Average Sale PriceEverett, MA 3 Family House Sales and Average Sale Price

    Similar to 2 families sales and average sale price, Everett 3 family sales and average sale price are down from the heights they reached in 2005.  In 2010, there have been 25 sales so far this year vs 56 for all of 2005.  The average sale price in 2010 is $310,356 vs $535,207 in 2005.

    Everett, MA 3 Family House Average Rent Per UnitEverett, MA 3 Family House Average Rent Per Unit

    The rent per unit for a 3 family house has not differed much from the rent per unit for a 2 family house.  In 2010, the average rent so far is $1,200 per month per unit.

    Everett, MA 3 Family House Average Rent MultiplierEverett, MA 3 Family House Average Rent Multiplier

    If you thought that it's a great time to invest in Everett 2 family houses, you'll be pleased to find out it is an even better time to invest in Everett 3 family houses.  The rent multiplier for an Everett 3 family house is 7.2 in 2010.  The rent multiplier has not been that low since before 1998 and is significantly lower than the 2 family rent multiplier!

    Do you need help finding a multifamily investment?  Ask Rich for help today!

  • Everett Single Family & Condo Market

    Posted Under: Market Conditions in Everett, Home Selling in Everett  |  October 24, 2010 7:09 PM  |  453 views  |  No comments

    The Everett single family and condo housing market has returned to levels close to where is was in 2001.  The average sale price in 2010 from Jan. to Sept. is $214,195.  105 properties have sold during this period.  The average time on market in 2010 is 88 days vs an average time of 40 days back in 2001.

    The chart and data in this post is based on information provided to and compiled by MLS Property Information Network, Inc. covering the period Jan. 2001 through Sept. 2010.

    Everett, MA Market Jan. to Sept. Everett, MA Market Jan. to Sept.

    From a foreclosure standpoint, during Sept. 2010, 1 in 829 Everett housing units were in foreclosure according to realtytrac.com.  This compares to an average 1 in 946 in Middlesex County.

    Are you buying or selling?  Do you need help understanding your local market?  Contact Rich today.

 
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