SoCal Multifamily Sales Pulse - December 14, 2020 - December 20, 2020
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
After months of negotiations, congressional leaders finally announced on Sunday they reached an agreement on a $900 billion economic relief package, which includes $600 direct payments to Americans, aid for small businesses, and an extension of the moratorium on evictions that was set to expire at the end of the year. The $900 billion economic relief package will extend the moratorium on evictions until Jan. 31, 2021. The package also includes $25 billion in rental assistance.
Most investors agree that if a vaccine becomes widely available to the general public in 2021, it will turn the economy towards recovery. Almost 80% of investors are concerned about President-Elect Biden's tax plan as it relates to the 1031 exchange and other tax breaks in 2021.
Some of the trends that multifamily investors are predicting for 2021 include:
- An increase in demand for ADU's
- Feasible locations for living and working
- Migration away from Class A Multifamily
- Increase in rental housing for unemployed
- Rent control for multifamily
Orange County
This week's Orange County sales were all 2-4 unit buildings. With 16 closed sales last week the activity level is about normal for most weeks this year and above the average amount of transactions that are typical for this time of year. This means the Orange County apartment market is still humming along. Still a lot of demand but still a lack of inventory. Only 201 total Active Listings in all of Orange County. There were just 2 all CASH transactions but there were still 5 listings that sold at or above the asking price. With 12 listings going Under Contract it again illustrates the high demand for Orange County multifamily properties.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
Long Beach
Most of the closed sales this past week were 2-4 units (12 closed sales) with the other sales consisting of one sale of a 5 unit building and two 8 units buildings being sold. Of the 10 financed transactions, there were 3 that were financed using FHA loans. With the average days on the market being just 32 days, it shows that the activity level is still brisk for properties that are priced correctly for the market. Inventory was down from 134 active listings last week to 130 active listings this week so overall the inventory has remained pretty consistent but still lower than the previous months of September - November where we saw the active listings at about 177-187 listings.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
Los Angeles County
Los Angles County had 90 closed sales last week. Up from 64 closed sales the prior week. Of the 90 closed sales from last week, there were 34 transactions that sold at or above the listing price. That's a huge number of sales at or over the listing price. This shows quite a bit of demand and a strong seller's market for the Los Angels County area. New listings are down to 91 last week compared to 117 new listings the prior week. Inventory levels are still at 8 months and only slightly down (1,927 prior weeks vs. 1,896 last week) in the number of listings.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
San Diego County
Last week we had 17 closed sales in San Diego County. The prior week there were 13 closed sales. All of last week's closed sales were 2-4 units. There were 16 of the 17 sales that used financing. San Diego County has the highest Months of Inventory (16) compared to all the other Southern California counties. There were no listings that went Active Under Contract but there were 18 pending listings. With 14 new listings coming to market and 18 pending sales the new inventory is allowing the market to replace the number of closed listings.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
Riverside County
Riverside County saw 9 closed sales last week compared to 6 the week before. Almost half (4) of the closed sales were purchased all CASH. There were only two new listings this past week. There was a negative loss of inventory from 123 in the prior week to 118 last week. Highly anticipated for this time of the year. Let's see what happens to inventory levels in January and February of 2021. With 9 listings going Under Contract or Pending last week it shows the market is still strong and if these sales close escrow it will keep the closed sales activity about the same in the first couple months of 2021.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
San Bernardino County
Rent growth in the Inland Empire led the nation, up 1.2% on a trailing three-month basis through October to $1,669, while the U.S. average stayed flat. The spike in rent growth began at the start of the third quarter, as its geographical location made the metro the main choice
for the exodus of residents leaving Los Angeles and the Bay Area.
There were only 4 closed sales last week in San Bernardino County. Down from 9 closed sales in the prior week. All of last week's closed sales were purchased with conventional financing. We typically see some buyers of San Bernardino multifamily use FHA or VA financing.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
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