So Cal Multifamily Sales Pulse - May 12, 2024 - May 18, 2024

Disclaimer: All information contained herein is obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only. We make no claim(s) as to the accuracy or reliability of the information presented. If you wish for us to analyze your specific property or situation please feel free to call or email us anytime.


Here's What's Happening In The Market, Here’s What This Means For You

Confidence in Multifamily Continues to Slide
Concerns in the sector has been growing as rent growth stalled and transaction volumes are far down.

Connect LA Experts on CRE Investment Without Fed Rate Cuts
The Federal Reserve is likely to hold off on reducing the federal funds rate until later this year. 

Market Waiting On Fed To 'Relent,' Warns Of Long-Term Interest Rate Fallout
The Fed has the wrong toolkit for this economy.

CRE Transaction Numbers May Be Seeing Some Recovery
But to get to pre-pandemic normalcy, interest rates would have to come down.

Distress Jumps While Extend-and-Pretend Continues
However, does pushing maturities into 2025 ultimately help, or is it delaying the inevitable?

Jerome Powell Reiterates Wait-And-See Approach To Fed's Monetary Policy
The Fed will "need to be patient and let restrictive policy do its work.

Wholesale Inflation Surges Again, PPI Shows, Leaving Inflation Still Sticky
U.S. producer price index climbs stronger than expected 0.5% in April.

Fed Officials Mull Whether Rates High Enough As Inflation Expectations Jump
Many U.S. central bank officials, including Fed Chair Jerome Powell, have said they still think further rate hikes will prove unnecessary.

NY Fed Survey: Consumers Expect Higher Inflation, Home Prices
In the labor market, the expectation that unemployment will be higher a year from now increased one percentage point to 37.2%.

Multifamily Leads Distress Rate Surge in April
April analysis reveals a significant spike in real estate distress rates, with multifamily properties experiencing the most dramatic increase.

The Fed’s Housing Market Dilemma, As Told By One Chart
National single-family rents rose 5% from March 2023 to March 2024, while multifamily rents rose 2.7%.

Fed To Cut Rates In September, Say Nearly Two-Thirds Of Economists
Insufficient progress bringing inflation down further alongside rising price expectations has stoked some doubts about whether the Fed will move at all this year.

What If the Neutral Interest Rate is Higher Than We Think?There’s an argument that the so-called neutral rate has grown, which would mean expect a new normal.

Signs of Increased CRE Lending Activity Emerge Despite Slowdown
Alternative lenders were the top lending group for the quarter.

Rents Are On The Rise Again, Moving Close To All-Time Highs
Although multifamily operators face challenges including rising costs and high interest rates.

Experts: Housing, Taxes Among Challenges for LA and California
Identifying the biggest challenge facing Los Angeles in particular and California in general drew a variety of responses.

U.S. Multifamily Rent Growth Expected to Accelerate Later this Year, Following Modest Year-Over-Year Increase in Q1
Absorption has remained surprisingly resilient despite the record deliveries over the last few quarters.

Rent Cuts Particularly Acute for Class B and C Apartments
Class B (-3.2%) and C product (-4.7%) are seeing the greatest declines.

Watch for These Signs of Recession As the Fed Keeps Rates Elevated
By aiming for a “soft landing,” the Fed could do some damage.

More Baby Boomers Find They Enjoy Renting
They prefer to avoid the financial responsibilities and stresses associated with homeownership.


If you're looking for currently available multifamily properties visit:
https://www.mikelembeck.com/search-the-mls
for access to all available multifamily listings throughout Southern California.

Orange County

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Orange County Closed Sales - MikeLembeck.com

Avg. Cap Rate: 4.44%
Avg. Gross Rent Multiplier: 14.74
8
Closed Sales Last Week
41
Closed Sales - Average Days on Market
$1,714,875
Closed Sales - Average Sales Price
3
Transactions Sold At or Above Asking Price
7
Financed Transactions Last Week
1
All Cash Transactions Last Week
8
2-4 Unit Transactions Last Week
0
5+ Unit Transactions Last Week

17
New Listings Last Week
7
Months of Inventory
238
Total Number of Active Listings
$798,700,040
Active Listings, Dollar Volume
10
Active Under Contract Last Week
4
Pending Listings Last Week
4
Expired Listings Last Week

Long Beach

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Long Beach Closed Sales - MikeLembeck.com

Avg. Cap Rate: 4.63%
Avg. Gross Rent Multiplier: 14.16
6
Closed Sales Last Week
43
Closed Sales - Average Days on Market
$1,676,667
Closed Sales - Average Sales Price
2
Transactions Sold At or Above Asking Price
5
Financed Transactions Last Week
1
All Cash Transactions Last Week
4
2-4 Unit Transactions Last Week
2
5+ Unit Transactions Last Week

12
New Listings Last Week
11
Months of Inventory
149
Total Number of Active Listings
$441,851,886
Active Listings, Dollar Volume
3
Active Under Contract Last Week
2
Pending Listings Last Week
2
Expired Listings Last Week

Los Angeles County

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Los Angeles County Closed Sales - MikeLembeck.com

Avg. Cap Rate: 4.63%
Avg. Gross Rent Multiplier: 14.16
62
Closed Sales Last Week
72
Closed Sales - Average Days on Market
$1,472,643
Closed Sales - Average Sales Price
18
Transactions Sold At or Above Asking Price
49
2-4 Unit Transactions Last Week
13
5+ Unit Transactions Last Week

162
New Listings Last Week
26
Months of Inventory
2,104
Total Number of Active Listings
$13,958,719,563
Active Listings, Dollar Volume
27
Active Under Contract Last Week
37
Pending Listings Last Week
23
Expired Listings Last Week

San Diego County

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San Diego County Closed Sales - MikeLembeck.com

Avg. Cap Rate: 4.65%
Avg. Gross Rent Multiplier: 14.4
8
Closed Sales Last Week
36
Closed Sales - Average Days on Market
$1,388,844
Closed Sales - Average Sales Price
2
Transactions Sold At or Above Asking Price
6
Financed Transactions Last Week
2
All Cash Transactions Last Week
8
2-4 Unit Transactions Last Week
0
5+ Unit Transactions Last Week

21
New Listings Last Week
5
Months of Inventory
238
Total Number of Active Listings
$112,005,195
Active Listings, Dollar Volume
1
Active Under Contract Last Week
11
Pending Listings Last Week
5
Expired Listings Last Week

Riverside County

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Riverside County Closed Sales - MikeLembeck.com

Avg. Cap Rate: 5.5%
Avg. Gross Rent Multiplier: 12.1
7
Closed Sales Last Week
59
Closed Sales - Average Days on Market
$1,374,986
Closed Sales - Average Sales Price
6
Transactions Sold At or Above Asking Price
5
Financed Transactions Last Week
2
All Cash Transactions Last Week
6
2-4 Unit Transactions Last Week
1
5+ Unit Transactions Last Week

14
New Listings Last Week
17
Months of Inventory
110
Total Number of Active Listings
$404,112,043
Active Listings, Dollar Volume
0
Active Under Contract Last Week
0
Pending Listings Last Week
2
Expired Listings Last Week

San Bernardino County

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San Bernardino County Closed Sales - MikeLembeck.com

Avg. Cap Rate: 6.39%
Avg. Gross Rent Multiplier: 9.63
6
Closed Sales Last Week
36
Closed Sales - Average Days on Market
$1,392,000
Closed Sales - Average Sales Price
2
Transactions Sold At or Above Asking Price
4
Financed Transactions Last Week
2
All Cash Transactions Last Week
4
2-4 Unit Transactions Last Week
2
5+ Unit Transactions Last Week

10
New Listings Last Week
22
Months of Inventory
170
Total Number of Active Listings
$322,767,573
Active Listings, Dollar Volume
0
Active Under Contract Last Week
3
Pending Listings Last Week
3
Expired Listings Last Week

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