The local market's 2003 apartment sales did not measure up to the $700 million in 2002 sales; however, prices showed a notable increase. The median price per unit last year was about $53,400, compared with $48,055 the year before. The median unit price in the Northeast Dade submarket climbed from $38,000 in 2002 to $46,000 last year. The submarket is in demand because of its location near the ocean and Fort Lauderdale, the report states. The median unit price in the Miami submarket increased from $39,000 to $43,000 for the same time period.

Buyer interest in multifamily assets also lowered cap rates in the market, as the average fell from around mid-8% to about mid-7% in the last year. This year, though, as interest rates increase, cap rates are expected to stabilize. Competition for properties will result in higher unit prices.

The report also predicts that in 2004 the metropolitan service area will add 12,000 jobs this year, a 1.2% increase. This compares to a 0.2% increase in 2003--moderate growth is expected to help absorption, but won't be enough to offset the impact of new supply. IN addition, asking rents are expected to grow 2.6% to $980 a month this year compared to the 3.4% increase in 2003. As for vacancy rates, which grew from 5.8% in 2002 to approximately 7% in 2003, the report expects an increase of 70 basis points this year.