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NYC Multifamily Market Shows Signs of Recovery
New York City’s multifamily market has begun to show positive signs of recovery, Ariel Property Advisors says in its third-quarter report. in Q3 2020. Price discovery has become more solidified, a process that’s helped by a 13% increase in dollar volume and a 19% increase in transaction volume compared to Q2.
However, Ariel says, “ongoing factors such as rising vacancy rates and reduced collections have significantly affected the value of NYC real estate. Over the past six months, the average price per square foot has fallen by over 20% in nearly every borough except the Bronx, in which it has only dropped by 5%.”
Furthermore, “the trailing six-month average dollar volume ending in September dropped by 64% when compared to March despite achieving similar transaction levels,” the report says. “The sharp fall in dollar volume correlates to declining property values and an absence of institutional sales in recent months.”
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