SoCal Multifamily Sales Pulse - June 7, 2021 - June 13, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
Investors Face Inflationary Environment for the First Time in Years
Due in large measure to the rebound from the pandemic, inflation has re-emerged as an undeniable factor for investors to reckon with. And while commercial real estate has long been regarded as a potential route for investors looking to hedge against inflation risks, many market participants haven’t faced such a steep inflationary environment before.
“An entire generation of CRE market participants has heard more about the benefits of this inflation hedge than seen it in action,” said Ryan Severino, chief economist at JLL, noting that it has been well over a decade since the Great Recession. “With inflation subdued for such a long period, there haven’t been many chances for the sector to prove out its reputation.”
That’s changing. The Consumer Price Index rose 0.9% in April over the previous month, the fastest monthly rise since 1982. In May, the year-over-year growth in the inflation rate was 5%, the fastest annual increase since 2008.
Orange County
Orange County multifamily Closed Sales Last Week moved back up into a more normal range but is still lagging most prior weeks. Closed Sales - Average Days on Market at just 33 days is still showing strong interest in available properties.
Most Orange County multifamily Closed Sales Last Week consisted of 2 unit buildings or 4 unit buildings. A couple of larger building sales to note were the sale of 6 units in Huntington Beach on California St. that sold in just 3 days and sold $151,000 over the asking price. Another sale of note was a 10 unit building on Howard Ave. in Los Alamitos that sold in just 9 days at 97.9% of the asking price.
There were 15 New Listings Last Week. Of the 15 new listings, there were two 5+ unit buildings and the rest were 2-4 units. There were 10 out of the 15 new listings located in beach/coastal cities.
The Active Under Contract Listings Average Days on Market were only 20 days.
Inventory continued to creep up and is now at 143 Total Number of Active Listings. This is at a high for the last 3 weeks.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Long Beach
A strong week of Closed Sales for Long Beach multifamily. Six out of the nine Long Beach multifamily Closed Sales Last Week Sold At or Above the Asking Price. Six out of the nine Long Beach multifamily Closed Sales Last Week sold in 11 days or less. And Six out of the nine Long Beach multifamily Closed Sales Last Week were duplexes.
With 21 New Listings Last Week, the Total Number of Active Listings increased to 117 listings. Months of Inventory remained the same at 3 months.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Los Angeles County
The majority of Closed Sales Last Week in Los Angeles County multifamily were 2-4 unit buildings. There were 46 duplexes, 16 triplexes, and 9 fourplexes that Closed Last Week. Most of the Closed Sales occurred in 20 days or less and only 8 properties took more than 100 days to sell. Half of the Closed Sales (42) were Transactions Sold At or Above the Asking Price.
With 142 New Listings Last Week, the Total Number of Active Listings increased to 1,750. This is a high point in Active Listings for the last few weeks but Months of Inventory remained at 11 months.
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 multifamily continued its strong run of Closed Sales Last Week with 17 Closed Sales with an Average Days on Market of just 18 days. The majority of the Closed Sales Last Week were duplexes (12).
With 28 New Listings Last Week, the Total Number of Active Listings increased to 178 listings. A high point for San Diego County over the last several weeks. Even though listings are at a high point the Months of Inventory dropped from 13 months to 12 months due to increased overall demand and sales pace.
Active Listings, Dollar Volume has continued its weekly increase and is now at $1,291,886,467.
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 back in the normal range with 11 Closed Sales Last Week. Of the 11 Closed Sales Last Week there were 3 Closed Sales to note. One sale was an 8 unit building on Lime St. that sold the day it hit the market at full price. Another sale of a 5 unit building on Cypress Ave. sold in 2 days at $1,000 over the asking price. And another sale of a 4 plex on Mead St. sold in 1 day at the asking price.
There were only 8 New Listings Last Week but the Total Number of Active Listings only increased slightly to 96 listings and Months of Inventory remained at 3 months.
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 were back to normal with 13 Closed Sales Last Week after the low of 2 Closed Sales in the prior week. Strong buyer demand and competition were indicated by Closed Sales - Average Days on Market at just 24 days and over half (8) Transactions Sold At or Above Asking Price.
One sale to note was a 22 unit building on E St. in Colton that sold $310,000 over the asking price. This was even after the property was on the market for 134 days. 8 of the 13 Closed Sales Last Week sold At or Above the Asking Price.
New Listings Last Week was normal with 12 new listings. Overall inventory was down from prior weeks to 135 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
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