SoCal Multifamily Sales Pulse -July 18, 2021 - July 24, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
More Home Inventory Enters the Market
From May to June, the inventory of unsold homes increased 3.3% to 1.25 million.
More inventory is coming online in the resale home market, which could signify the frenzy is peaking.
From May to June, the inventory of unsold homes increased 3.3% to 1.25 million– equivalent to 2.6 months of the monthly sales pace, according to the National Association of Realtors.
The inventory total was still down 18.8% from one year ago (1.54 million). Unsold inventory is up from May’s 2.5-month supply but down from 3.9 months in June 2020.
“Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales,” said Lawrence Yun, NAR’s chief economist in a prepared statement.
There were 14 Orange County multifamily sales last week. This is up from the prior 2 weeks but also about average for Orange County. The locations of the closed sales were again dominated by coastal cities. Closed Sales - Average Days on Market remained about the same at just 36 days. This stat is on par with the Average Days on Market stat for the last 3 months. Almost half (6) of the Closed Sales Last Week were Transactions That Sold At or Above Asking Price.
Most of the listing inventory stats were consistent with prior weeks. With 14 New Listings Last Week, 154 Total Number of Active Listings and 3 Months of Inventory.
Long Beach multifamily had 9 Closed Sales Last Week. This is up from the prior 2 weeks when there were only 6 closed sales in both of those weeks. Average Days on Market was 41 days. The Closed Sales - Average Sales Price was up approx. $300,000 from prior weeks. 5 of the 9 closed sales sold at $1,000,000 or more. Only 2 of the 9 Closed Sales Last Week Sold At or Above Asking Price. Long Beach typically has about half of the closed sales each week selling at or above asking price.
There were 3 closed sales of significance. All for different reasons: 6 units on 3rd St., 6 units on Orizaba and 8 units on Martin Luther King Jr. I suggest taking a look at those sales by clicking on the Live MLS link.
There were only 5 New Listings Last Week. Bringing the Total Number of Active Listings back down below 100 to 99 total active listings. Months of Inventory remained at 3 months and Active Listings, Dollar Volume was about the same as prior weeks.
Los Angeles County
Los Angeles County multifamily sales moved up over 100 with 101 Closed Sales Last Week after 93 closed sales in the prior week. Closed Sales - Average Days on Market remained about average at 45 days. Most of the sales occurred in under 100 days with only 10 sales eclipsing 100 days on market. Common for Los Angeles County multifamily, almost half (45) of the Transactions Sold At or Above Asking Price.
With 162 New Listings Last Week the Total Number of Active Listings was over 1,800 for the first time in quite a while. Although Months of Inventory remained at 10 months.
San Diego County
San Diego County multifamily had 10 Closed Sales Last Week. 7 of the 10 closed Transactions Sold At or Above Asking Price. Another strong week for sellers of San Diego apartments. With Closed Sales - Average Days on Market moving to 36 days, that was the first time the days on market stat has been over 30 days for quite a while. As you can see by the weekly trend chart below San Diego County multifamily days on market have been averaging in the low 30 or less for the last couple of months.
With 31 New Listings Last Week that is the peak for weekly listing activity for the last several weeks. Even with this many new listings last weeks the Total Number of Active Listings (195) and Months of inventory (3) remained about the same.
Riverside County multifamily had 6 Closed Sales Last Week. The Closed Sales - Average Days on Market was 43 days with all sales closing in 22 days or more and none of the closed sales were on the market for more than 99 days. There were three 5+ unit transactions. All 3 of these transactions sold over $1,000,000.
Riverside County had just 2 New Listings Last Week. This might be an all-time low. Months of Inventory remained at 3 months and the Total Number of Active Listings was at 102. Both are pretty consistent with recent week stats.
San Bernardino County
San Bernardino County multifamily had 12 Closed Sales Last Week. That’s up from the prior week where there were 9 Closed Sales but overall, that’s about average for the number of sales per week for San Bernardino County.
With 21 New Listings Last Week the Total Number of Active Listings increased to 143 listings. That’s the most Total Number of Active Listings we’ve seen in quite a while. Months of Inventory was unchanged at 7 months.