April 2015

Total apartment returns tracked by the National Council of Real Estate Investment Fiduciaries increased to 2.77 percent in the fourth quarter of 2014.

Click here for multifamily market statistics from the April 2015 issue of MHN.

 

Total apartment returns tracked by the National Council of Real Estate Investment Fiduciaries increased to 2.77 percent from 2.63 percent in the fourth quarter 2014. This is the highest return since the fourth quarter of 2012.

The median existing condo and co-op sales price in 2014–$205,100–was 5.2 percent higher than the $194,900 recorded in 2013, according to the National Association of Home Builders (NAHB).

Existing condo and co-op sales, measured at a seasonally adjusted annual rate, fell by 5.0 percent over the month of December 2014. For the year, existing condo and co-op sales fell by 2.0 percent to 591,000 units, says NAHB.

NAHB reports that the seasonally adjusted Consumer Price Index—Urban Consumer (CPI), fell by 0.4 percent in December 2014. This is the second consecutive decline in consumer prices. Over the year, the CPI rose by 0.8 percent, its lowest rate of 12-month growth since 2009, when the CPI was declining.

Energy prices fell by 10.6 percent over 2014 as gasoline prices declined by 21.0 percent and fuel oil prices fell by 19.1 percent, according to NAHB. Rental prices rose by 3.4 percent, and NAHB’s Real Rent Index rose by 1.8 percent, over 2014.

Multifamily housing starts of buildings with five or more units, measured at a seasonally adjusted annual rate, fell by 4.2 percent over the month of December 2014 to 339,000 units, according to NAHB. For the entire year, there were 344,000 housing starts of buildings with five or more units, a 17.2 percent increase over the number of five-or-more-unit housing starts recorded in 2013

Multifamily mortgage debt outstanding increased to $399.6 billion for agency and GSE portfolio and MBS in the third quarter, compared to 391.3 billion in the third quarter 2014, according to data compiled by the Mortgage Bankers Association. Banks and thirfts’ loan balance also increased, from $281.2 billion in the third quarter to $289.0 billion in the fourth quarter.