SoCal Multifamily Sales Pulse - February 8, 2021 - February 14, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
February Rent Collections Up From January
The most recent National Multifamily Housing Council Rent Payment Tracker showed an increase in the number of apartment households that made a full or partial rent payment since January.
The NMHC found that 79.2% of respondents in its survey of 11.6 million units made a full or partial rent payment by Feb. 6. In comparison, 76.6% made a full or partial rent payment by Jan. 6, 2021.
Still, the rent payment numbers are much lower than they were before the pandemic. The 79.2% of respondents who made full or partial payment by Feb. 6 is 1.9 percentage point, or 216,479 households decrease from the share who paid rent through Feb. 6, 2020. NMHC says these data encompass a wide variety of market-rate rental properties across the US, which can vary by size, type and average rental price.
New Reports From MBA Predict Lending And Mortgage Maturities To Increase This Year
Commercial and multifamily lending markets are poised for strong growth in 2021. According to a new report from the Mortgage Bankers Association, mortgage maturity volumes are likely to increase 36% this year, while commercial and multifamily lending are forecasted to increase 11%.
Commercial and multifamily mortgage bankers are predicted to close $486 billion this year—an increase from the $440 billion in loan volumes closed in 2020—with multifamily lending driving the growth. The sector alone is set to increase 7% this year, up $323 billion in 2021. By comparison, multifamily lending activity totaled $302 billion in 2020.
Orange County
Just 9 Closed Sales last week for Orange County Multifamily. Orange County usually averages at least 10-12 or more Closed Sales weekly. It was another strong week for New Listings with 16 New Listings. Months of Inventory and Total Number of Active Listings both remained consistent with prior weeks. There were 12 Pending Sales Last Week which is quite a bit more than the usual 2-4 Pending Sales we usually see. This is a result of transactions that the buyer and seller agreed to 4-6 weeks ago.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Long Beach
With 9 Closed Sales Last Week Long Beach Multifamily sales stayed consistent with prior weeks. The Active Under Contract and Pending Sales stats were both lower than usual. These two stats are stats we are watching as the last two prior weeks were down also. The Total Number of Active Listings has remained almost the same as the last few weeks averaging around 125 weekly.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Los Angeles County
Most Los Angeles County multifamily stats remained pretty consistent with prior weeks. The only stat that was different than most prior weeks was 5+ Unit Transactions Last Week which came in at 15. The normal amount of 5+ Unit Transactions Last Week is around 4-8 on average. Expired Listings Last Week dropped to just 24 Expired Listings, this is lower than the past few weeks when it was around 45-50 Expired Listings on average. With Active Under Contract Listings and Pending Sales Last Week stats both up last week, demand is staying strong for Los Angeles County multifamily.
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 County's multifamily Absorption Rate of 2.68 months is the fastest in the entire Southern California area. Orange County's multifamily Absorption Rate is a close second at 2.83 months. Accordingly, San Diego County multifamily Closed Sales last week were consistent with 9 Closed Sales. There have been no Active Listings Under Contract the last two weeks but Pending Listings Last Week has remained consistent with 19 Pending Listings Last Week.
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 sales were way down with just 3 Closed Sales Last Week. This is the lowest amount of Closed Sales we've seen in quite a while. Could just be a hangover from the holidays as Active Under Contract Listing Last Week and Pending Sales Last Week were both normal. The Total Number of Active Listings are down to just 108 Active Listings. That's not a lot of inventory for the entire county. That's the fewest Number of Active Listings in the entire Southern California market.
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 County multifamily sales activity was normal with 8 Closed Sales Last Week. There has been only one Closed Sale in the last 3 weeks that was purchased All Cash. I would think with prices in San Bernardino County being the lowest in the entire Southern California market we would see more All Cash transactions. Of the financed transactions there were two transactions that used an FHA loan and one transaction that used VA financing. New Listings Last Week were up, and the Total Number of Active Listings was also higher. With the Days to Sell Average down to just 39 days overall last month, an increase in inventory is helpful for the market.
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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