Duplex properties values have been rising more than 6% per year for the past three years in Los Angeles. However, 2017 may be the first time in a long time we see prices finally begin to come down. Since Trump’s election we have seen the 10 year bond move from 1.75% to 2.3% and many expect this violent move up to only continue. The mortgage market has already begun responding with higher rates and this also will continue.
Since many income multifamily property investors in Los Angeles valuate their Duplex, Triplex and Fourplex investment properties on CAP Rate, we may see asking prices begin to move down as interest rates move up. Duplex, Triplex, Fourplex properties for sale in areas under rent control are at even more risk of price depreciation. In these areas landlords are restricted on raising rents to offset the rising costs of their adjustable mortgages.
Visit MultiFamilyOWL often to search for Duplex Properties For Sale in Los Angeles and surrounding cities in Southern California. 2017 may shape up to be the beginning stages of a multi-year BUYERS’ MARKET !!!!!!!