SoCal Multifamily Sales Pulse - December 21, 2020 - December 27, 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
Multifamily transaction activity has fallen sharply in 2020 due to the fallout from COVID-19. Through three quarters in 2020, $50.6 billion of multifamily property sales were completed in the U.S., down 41.7% from $86.5 billion through the same period a year ago, according to Yardi Matrix. There’s little hope full-year volume will get close to 2019’s record high of $127.8 billion.
Sales recovered in the third quarter after hitting a trough in 2Q20, but like so much about the economy, a return to “normal” transaction activity is hard to predict. Until the pandemic recedes and people can return to daily activities with the help of an effective vaccine, uncertainty will linger. Acquisition yields for apartments have barely budged throughout the year. Recent sales show some apartments are returning to pre-pandemic pricing.
Still, pricing depends, to some extent, on operations and location. Every property is a case-by-case situation, based on location as well as operations and rent collections. Properties with bad operations are not going to be able to get top dollar, but well-managed properties are still going to go out there and do well based on collections.
The broadest measure of business output shows how far the pandemic sunk California’s economy — what was one of the nation’s hottest business climates in 2019 suffered the seventh-weakest rebound this summer. In 2019, California GDP growth was topped by just four states. Considering how hard the pandemic has hit the state at year’s end, it’s a good bet that California’s economic underperformance will continue.
Orange County
Orange County saw 19 closed sales last week. This is a high watermark for recently closed sales as the typical weekly sales are between 12-16. Total Number of Active Listings is down from last week to 177 indicating the usual lack of new listings for this time of the year. Anticipate it to remain this way into the last week of 2020. Active Under Contract listings dropped to 6 from 12 the prior week.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
Long Beach
Long Beach saw just 8 closed sales last week. This is down from 15 in the prior week. Closed sales average sales price was down approx. $347,000 indicating the lower-priced properties are more in demand. This is a good statistic to keep an eye on. Only 3 New Listings last week brought the total Active Listings down from 130 to 120. We've seen inventory drop over the last 3 weeks. Highly expected for the time of year and with COVID-19 cases still increasing.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
Los Angeles County
Big drop in Closed Sales last week for Los Angles County. Down to 65 Closed Sales from 90 the previous week. Still, quite a few transactions closing at or above the asking price with 20 of the 65 sales closing at or above the asking price. New listing inventory was also way down - going from 91 New Listings in the previous week to just 44 New Listings this past week. The activity was still strong with 30 Active Listings Under Contract with the prior week coming in at 33 Active Listings Under Contract.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
San Diego County
San Diego County saw just 9 Closed Sales last week. Down from 17 Closed Sales in the prior week and 13 Closed Sales in the week before. Demand is holding steady with 5 of the 9 Closed Sales selling at or above the asking price. We've seen 2 straight weeks of no listings going Active Under Contract. We also saw the numbers down from 18 Pending Listings to just 6 Pending Listings last week. This will translate to less Closed Sales in late January and early February 2021. With the number of New Listings dropping from 156 in September 2020 to just 96 in November 2020 this will probably also translate to less Closed Sales in late January and early February 2021.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
Riverside County
Another market where there was a big drop in Closed Sales from the prior week in Riverside County. Only 3 Closed Sales last week. Down from 9 Closed Sales in the previous week. Most of the other statistics for the week remained pretty much on par with the prior week's activity. Checking the overall monthly Days to Sell Average there has been a fairly significant drop from 64 Days to Sell Average in September to just 35 Days to Sell Average in November. We also saw the Number of New Listings go from 60 in September to 40 in November. New statistics for December will be available next week and is a good indicator of where inventory and transactions are headed for 2021.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
San Bernardino County
San Bernardino County had 7 Closed Sales last week. Up from 4 Closed Sales in the prior week. There were 4 listings that went Active Under Contract and 5 listings that went to Pending last week. This reflects the information from the recent analysis of increased rent growth and demand for Inland Empire real estate. The overall trend for the Number of Active Listings in San Bernardino County has dropped from 440 in August 2020 to 415 in November 2020. Not a significant drop in the Number of Listings but 3 straight months of decreasing listings. Total Number of Active Listings held steady at 142 last week with the same amount in the prior week.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
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