SoCal Multifamily Sales Pulse -August 8, 2021 - August 14, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
Multifamily Challenge to Eviction Moratorium Fails for Now
Previous non-definitive Supreme Court ruling undercuts a win. Friday the 13th upheld its superstitious reputation for the multifamily industry. A federal judge allowed the newly extended residential eviction moratorium to stand for now because of a complex legal technicality.
When the Biden administration directed the CDC to extend the housing eviction moratorium yet again, it might have seemed that the action had a poor chance of standing up to a legal challenge. And yet it just did on Friday, with the new moratorium.
After all, the Supreme Court had seemed to say in June that the CDC lacked the authority to do so and only left the previous extension through July to stay in place so more of the rental rescue funds could be distributed.
But by July 30, according to Speaker of the House Nancy Pelosi, only $3 billion out of an originally allocated $46.5 billion had made its way into the hands of those who needed it. After Congress failed to extend the moratorium, the Biden administration did so without additional authority for another two months.
Orange County multifamily had 16 Closed Sales Last Week. That’s up slightly from the prior week where there were 13 closed sales. 7 of the 16 closed sales were duplexes. 9 of 16 closed sales were in coastal cities. The Average Days on Market was 39 days. There were two closed sales that inflated the Average Days on Market. If we remove those two closed sales the Average Days on Market drop to just 17 days.
There was a closed sale of note of a 6-unit trophy property in Dana Point on Olinda Dr. The property sold for $3,000,000, that’s $500,000 per unit. Looking at the property, it underwent roughly $200,000 worth of exterior and interior renovations in 2018. The unit mix is four 2 bdrm. 2 bath units and two 1 bdrm. 1 bath units. There’s even some room to increase rents for the new owner.
Looking at the listing inventory for Orange County we saw 15 New Listings Last Week. The Total Number of Active Listings went from 166 listings 2 weeks ago to 154 last week. Months of Inventory was unchanged and Active Listings, Dollar Volume was just about the same as the prior week.
Long Beach multifamily had just 6 Closed Sales Last Week. Long Beach had the same number of closed sales 2 weeks ago and 4 weeks ago. All the closed sales were 2-4 unit buildings. The majority of the sales occurred in 30 days or less. One property was on the market for 128 days, which increased the Average Days on Market from what would have been 16 days to 35 days.
Long Beach had 9 New Listings Last Week. The listing inventory dropped back down below 100 listings after being at 106 listings in the prior week. Months of Inventory remained at 5 months.
Los Angeles County
Los Angeles County multifamily had 86 Closed Sales Last Week. That’s up from just 71 closed sales in the prior week and is more in line with the typical number of closed sales in 1 week for Los Angeles County. 35 of the 86 closed sales were duplexes. Closed Sales - Average Days on Market was 48 days. This is about normal for LA County.
Los Angeles County saw 151 New Listings Last Week. This is about normal for Los Angeles County. Months of Inventory remained at 10 months. Active Under Contract Last Week and Pending Listings Last Week were both up from the prior week and more in line with a typical week of activity Los Angeles County multifamily.
San Diego County
San Diego County multifamily had 18 Closed Sales Last Week. That’s up from 17 in the prior week and is the highest number of closed sales per week in quite some time. San Diego County multifamily continues to be in strong demand from investors. Another indication of strong demand is that out of the 18 Closed Sales Last Week 14 were Transactions Sold At or Above Asking Price. 14 of the 18 closed sales were duplexes.
Of the financed transactions 2 transactions were financed with VA financing and 3 transactions were financed with FHA financing.
There were 28 New Listings Last Week and the Total Number of Active Listings is now at 206 listings. This is about normal for San Diego County.
Riverside County multifamily had 6 Closed Sales Last Week. That’s down from 8 closed sales in the prior week and is about average for the number of weekly closed sales for Riverside County. The Closed Sales - Average Days on Market was just 29 days. It typically runs about 45 days. Half of the closed sales were all-cash transactions.
One transaction that stood out from the rest was a 4 plex sale on Cottonwood Rd. in Palm Springs. The 4 plex sold for $1,026,500 which is quite high for 4 units in Palm Springs. The units consisted of all 2 bdrm. 2 bath and the property included a pool.
There were 11 New Listings Last Week. Which is higher than normal and the same as the prior week. Usually, the new listings per week is around 6-8 listings. The Total Number of Active Listings moved back over 100 listings after being less then 100 listings for a couple weeks. Months of Inventory remained the same at 3 months.
San Bernardino County
San Bernardino County multifamily had 10 Closed Sales Last Week. This is about normal for the number of closed sales per week in San Bernardino County. The Closed Sales - Average Days on Market was way up to 70 days due to two closed sales being on the market for 360 and 150 days. With those two closed sales removed the average days on market would be 23 days, which is more in line with the typical weekly days on market.
There were 8 New Listings Last Week. This is below the typical number of new listings in a week, which usually ranges around 15-20 per week. The Total Number of Active Listings is back down below 150 listings again at 146 active listings.
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