APARTMENT MARKET STATISTICS: June 2013
Bank lending increased across the board for multifamily properties, income-producing commercial real estate, and owner-occupied commercial real estate, according to Chandan Economics. And the recovery in large and mid-tier banks’ commercial property balance sheets continued into the third quarter, stated Sam Chandan, chief economist.
Apartment equity REITs showed a compound annual increase of 1.30 percent for one year, and 9.67 percent for five years, according to National Association of Real Estate Investment Trusts.
Housing starts for buildings with five or more apartments came in at a seasonally adjusted annual rate of 285,000 units in February 2013. This represented a 1 percent gain versus January, stated the National Association of Home Builders (NAHB). Overall, the recent permit numbers have been strong enough to support a five-plus starts rate in range of 285,000 over the next couple of months, said NAHB.
Prices for building materials used in residential construction have accelerated in recent months, said NAHB. Price pressures have not occurred evenly across the board, but instead have been driven largely by strong increases within a handful of building material categories.
Seasonally adjusted condominium and co-op sales soared 8.8 percent from January, up to a seasonally adjusted 620,000 units, according to NAHB. NAHB states that existing condominium and co-op prices (not seasonally adjusted) expanded nearly 14 percent in the past year, climbing to $172,500 during February.