SoCal Multifamily Sales Pulse - February 1, 2021 - February 7, 2021
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
The good news is Commercial Mortgage-Backed Securities (CMBS) delinquencies are down for the third straight month. Hopefully it's a sign that the worst of the COVID market is behind us.
One common narrative about the changing migration patterns of the last year is that fear of the coronavirus and new remote work models led people to move to greener vistas. However, a new survey from the Pew Research Center shows that financial stress drove most decisions to relocate, especially as the pandemic wore on.
In November, a third of respondents in the Pew survey said that financial reasons motivated their decision to move. Among this group, 17% of respondents cited job loss as the financial pain point, while 15% said that the financial pain point was something other than job loss. This is a significant increase from June when only 18% of respondents cited financial pressures as the reason for their move.
The trend was even more notable among those who moved with another adult. When isolating for this category, 36% of people who moved with another person cited financial reasons as the main motivator to move. This suggests that families faced more significant affordability challenges during the pandemic than single adults.
A high risk of contracting the coronavirus and moving to be closer to a family member also topped the list as reasons why some people decided to move, 14% and 17% respectively. College students moving due to campus closures was also among the most common reasons for migration to a new market, according to the survey.
Orange County
Orange County multifamily sales were back to normal last week with 12 Closed Sales, with almost half of the Closed Sales closing At or Above the Asking Price. The Months of Inventory dropped from 5 months to 4 months as the Total Number of Active Listings went from 175 Active Listings in the prior week to 163 Total Number of Active Listings last week. There were 15 Active Listings Under Contract last week. This is an increase of almost double from prior weeks which shows demand is holding steady or increasing.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Long Beach
In Long Beach, the multifamily sales totaled 8 Closed Sales. Average Days on the Market increased from 25 days in the prior week to 52 days last week while Months of Inventory increased from 5 months to 6 months. Perhaps a little bit of a slowdown in demand for Long Beach? There were only 6 New Listings Last Week in Long Beach but the Total Number of Active Listings remained pretty consistent at 123 total Active Listings. Check the charts above to see where the trends are for Days to Sell Average, Number of Active Listings and the Number of New Listings on a monthly basis.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Los Angeles County
Los Angeles County multifamily Closed Sales held steady with 70 Closed Sales last week. Transactions Sold At or Above Asking Price also remained steady with 27 listings selling At or Above Asking Price. Los Angles County multifamily demand is consistently strong as investors look for stable investments in areas with strong rental demand. Months of Inventory has increased from 8 Months of Inventory 2 weeks ago to 14 Months of Inventory last week due to the increase of New Listings coming on the market since the beginning of the year. Active Listings Under Contract and Pending Listings were pretty consistent last week in comparison to the prior weeks activity levels.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
San Diego County
Demand for San Diego County multifamily remained strong with 11 Closed Sales Last Week. Average Days on the Market remained low at just 33 Average Days on the Market. Pending Listings Last Week was up at 24 Pending Listings Last Week. The Average Days on the Market and Pending Listings Last Week stats are both showing a consistently strong investor demand for San Diego County multifamily.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Riverside County
In Riverside County, there were 5 multifamily Closed Sales which is about average for the area. Typical Closed Sales usually run from about 3 Closed Sales to as many as 9 Closed Sales per week. There were a total of 15 New Listings Last Week so inventory levels remained consistent with prior weeks with 123 Total Number of Active Listings. There was an increase in Active Under Contract Listings last week to 8 Active Under Contract Listings. The normal amount is about half as many.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
San Bernardino County
Most of the stats for San Bernardino multifamily sales remained consistent with prior weeks. The only stat that saw a significant difference was Pending Sales Last Week. The Pending Sales Last Week came in with 13 Pending Sales, up from the normal amount of between 5-9 Pending Sales per week on average. Out of the 8 Closed Sales last week 4 of the Closed Sales were purchased At or Above the Asking Price.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
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