Multi-Family Market Slows

Despite a 40 percent drop in multi-family housing sales, the market for apartments remains healthy in the Tulsa area, according to the 2007 Apartment Report from Commercial Realty Recourses Co., 4137 S. Harvard Ave., Ste. E.
The report showed a total of $191 million in multi-family real estate transactions for the 2007 calendar year, down from $321 million in 2006.
Average unit prices for 2007 were down slightly as post–1980’s built properties garnered an average sales price of $34,306 per unit, down from $37,787 in 2006.
Pre-1980’s construction incurred an average sales price of $28,894, which was an increase of 4 percent from the 2006 year-end average of $27,894.
According to the annual report, a temporary squeeze in the national sub-prime lending market caused the drop in sales. It also noted that “Market participants remain active in the Tulsa area and capitalization rates have remained constant through 2007.”
“We anticipate this trend to continue given that long-term funding remains available for multi-housing type properties.”
CRRC noted an increase in rental rates and occupancies and expressed confidence that the market would remain stable.
“We anticipate continued sales activity with no significant changes in overall capitalization rates,” the report stated, “meaning that values should remain steady or trend upward in 2008.”

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