PBN: Five Questions With: Joseph Luca

By Mary MacDonald-June 21, 2018 4:30 am

Joseph Luca, president of the Rhode Island Association of Realtors, recently spoke to the Providence Business News about the upward trend for sales and appreciation in the multifamily category. In May, the median price for the sale of buildings with two or more units rose 20 percent. And the inventory rose as well, by 16 percent.

PBN: What is happening with the multifamily market? In one month, we had a 20 percent surge it seems in price.

LUCA: I wouldn't classify it as a surge. It's been pretty consistent over the past year that prices have been increasing. There has been steady demand. A lot of times if you have a house and it's listed at $200,000, and a lot of people are interested, and it ends up selling for $210,000, the appraisers, they have the offers to support that it's worth that much. That value is supported by what's going on in the marketplace. We're moving the distressed properties from the marketplace. Right now, the average cost of a multifamily is $246,000.

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Courtesy of Providence Business News