Multifamily development levels increase

Multifamily development may continue this year.

Property management companies may experience an improved multifamily sector in 2013, as the overall real estate recovery showed notable progress since the recession ended.

There was a marked improvement in the multifamily sector in 2012 compared to the point where recovery began toward the final months of 2010,the National Association of Home Builders at the International Builders’ Show explained in a press conference. Recovery reached the 70 percent mark of the level recorded at the previous peak. These levels may continue to improve as this year continues.

“We are forecasting construction of 299,000 new multifamily residences in 2013,” said David Crowe, chief economist for the NAHB. “While this is an improvement from just a few years ago, it is still well below the 350,000 units that are required to keep supply and demand in balance.”

Some of the improvements in the multifamily market may be due to better commercial loan conditions. There was a decline in non-performing loan prices during November, as the figure fell to an average monthly price of 51.2 percent, according to a report from DebtX. This was significantly lower than one year earlier, when it was 71.5 percent.

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