Good Morning,
This is Multifamily Monday, my weekly look at property with 2 or more units (2+ units) around Louisville. Anything with 2 or more units counts as commercial real estate, even a duplex. Every number below comes from our Multiple Listing Service (MLS), the database agents use to list and sell property.
What came on the market
12 new 2+ unit listings hit the MLS in the last 7 days, adding 42 units in total. Ten are in Louisville, one is in Frankfort and one is in New Albany, Indiana.
The median list price per unit was about $111,000. Price per unit is the asking price divided by the number of units. Median means the middle value, so one very cheap or very pricey building doesn't throw it off. Last week it was about $166,000.
The mix: 4 duplexes, 1 triplex, 5 fourplexes, a 5-unit and a 6-unit. Asking prices ran from about $43,000 to $207,500 a unit.
What actually sold
20 sales of 2+ unit property closed in the last 30 days, totaling 107 units.
Average sale price per unit: about $77,100 (total sale dollars divided by total units)
Sale-to-list ratio: 93% overall. Buyers paid about 93 cents for every dollar of the final asking price. Only 3 of the 20 sold at or above list.
Median cumulative days on market: about 58 days. Cumulative counts every day a property was listed, including earlier listing periods before it was relisted. Last week it was about 50.
One 38-unit sale, also counted last week, is still inside the 30-day window at about $65,500 a unit. Take it out and the other 19 sales averaged about $83,500 a unit. The 6 duplexes that sold averaged about $116,000 a unit and got about 96% of their asking price.
What that means for you
Last week, new duplexes were asking a median of about $177,500 a unit, while closed duplexes averaged about $121,000. This week the two are much closer: about $112,500 a unit asked versus about $116,000 sold. One is a median asking price and the other is an average sale price, so it's not a perfect match.
Median cumulative days on market rose to about 58, from about 50 last week, and 9 of the 20 had more than 60 cumulative days.
If you're buying, a duplex priced near what's closing deserves a quick look. On buildings with 3 or more units, buyers paid about 92% of list. Run your numbers on what closed, and when a building has been listed past that 58-day mark, it's fair to ask what the seller would take.
If you own a 2 to 4 unit building, price it off recent sales, not off what the building down the street is asking. Reply and I'll show you what similar buildings actually sold for.
None of mine on the market this week
I don't have an active 2+ unit listing of my own right now. When I do, it'll show up here.
Want the hand-picked list?
MLS rules keep me from naming other brokers' listings in an email like this, but I can send them to you one-to-one. Reply MULTI with your price range and how many units you want, and the Winner Realty team and I will send you the ones I'd actually look at. Or grab a time that works for you: https://robbergeron.youcanbook.me
Free tools for Louisville buyers, sellers and investors, no sign-up and no email wall: the investment property analyzer, the BRRRR calculator, the Kentucky seller and buyer closing cost calculators, and a lot more on the tools page.
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Text or email me anytime. See you next Monday.
Warmly,
Rob Bergeron
Owner–Realtor at Award-Winning Winner Realty
Winner Realty: (502) 305-8915
Winner Realty | OffMarket.deals | Property Partner Data Company
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