SoCal Multifamily Sales Pulse - February 22, 2021 - February 28, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
Southern California Rental Market and Transaction Volume
Despite tepid transaction volumes, property values have oscillated only slightly, as per-unit prices dropped from 4.7% in 2019 to an average of $327,948 in 2020. That relative consistency is also mirrored by acquisition yields for LA multifamily assets, which remained compressed, in the 4.0%-4.5% range for Class A assets in urban areas.
LA rents were down 0.1% on a trailing three-month basis as of December, in line with the national trend. The average overall rate stood at $2,157, well above the $1,462 U.S. figure. Expect LA rents to slightly rebound through 2021, at 0.3%.
Following decades of population growth, LA is facing an uphill battle to retain residents, with lower-cost options such as the Inland Empire and other Sun Belt markets attracting LA dwellers. LA rent woes strongly contrast the neighboring, lower-priced Inland Empire, where rates moved up a strong 7.3% in 2020, while the LA average decreased by 3.0%.
Orange County
Orange County multifamily sales were up last week with 17 Closed Sales. All indications are for smooth sailing for the demand for Orange County multifamily properties. The Total Number of Active Listings dropped slightly to 152 listings while the Active Listings, Dollar Volume has gradually dropped for the last 3 weeks. With 12 new Active Listings Under Contract Last Week activity shows buyer interest in Orange County multifamily isn't letting up any time soon.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Long Beach
Long Beach multifamily sales were back at normal levels with 8 Closed Sales Last Week. That's up from just 1 Closed Sale the week prior. Closed Sales - Average Days on Market remained low at just 33 days. After not seeing any All Cash closed sales in the prior 2-3 weeks there were 3 Closed Sales purchased using All Cash last week. Looks like investor's interest in Long Beach apartments is still strong. The Total Number of Active Listings was unchanged with 124 Active Listings.
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 saw a whooping 96 Closed Sales Last Week. That's the most Closed Sales I've seen for LA County since I've been writing this blog. With 36 Transactions Sold At or Above Asking Price this is another indication of strong demand for Los Angeles County multifamily. With another 59 Active Listings Under Contract Last Week and 59 Pending Listings Last Week the Closed Sales Last Week stat should remain high for the foreseeable future.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
San Diego County
San Diego multifamily came in last week with 17 Closed Sales. This stat is up from the usual amount of approx. 8-12 Closed Sales. Another indication of strong investor interest in Southern California multifamily. Closed Sales - Average Days on Market also remained low at just 38 Average Days on the Market. The Total Number of Active Listings has dropped for the last 3-4 weeks due to a decline in the New Listings Last Week stat for the same time period.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Riverside County
Riverside County multifamily had 10 Closed Sales Last Week indicating strong investor interest as typical amounts for Closed Sales Last Week in Riverside is around 6 Closed Sales or less. Another indication of strong investor interest is 7 out of the 10 Closed Sales Transactions Sold At or Above the Asking Price. The inventory level remained steady with 100 Total Number of Active Listings.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
San Bernardino County
San Bernardino multifamily Closed Sales Last Week were also up with 11 Closed Sales Last Week. There were 4 Transactions Sold At or Above Asking Price and 3 All Cash Transactions Last Week, another indication of strong investor interest as those stats are usually lower. The listing inventory stats were either at normal levels or slightly above normal. This indicates the market should keep moving as it has been for the past few weeks.
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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