SoCal Multifamily Sales Pulse - March 1, 2021 - March 7, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
Landlords, Beware
The economic downturn amid the COVID-19 pandemic has caused some to accept partial rent payments from struggling tenants. But a nugget within a new ruling in a landlord-tenant lawsuit suggests potential unintended consequences.
“Landlords have to be careful when they take lesser payments, especially during COVID, that they are not entering into a new agreement,” said Roy D. Oppenheim, co-founder and senior partner of Florida-based Oppenheim Law, who was not involved in the litigation.
That’s precisely what happened in a dispute before the Court of Appeals of Georgia, in The Hatchett Firm v. Atlanta Life Financial Group—a case involving law-firm tenants and their landlord.
In it, the court sided with the law firm litigants, finding that by accepting reduced and irregular payments for an extended period, plaintiff Atlanta Life Financial group had created a quasi-new agreement. It ruled that by accepting 16 months of initially reduced rent, and then non-payments outside the scope of the initial contractual agreement, the landlord had waived its rights to collect rent.
Orange County
Orange County multifamily had 20 Closed Sales Last Week. The highest number of Closed Sales in quite a while. Out of the 20 Closed Sales Last Week almost half (9) were duplexes. There were 5 Closed Sales in Costa Mesa, 3 Closed Sales in Huntington Beach and 3 Closed Sales in Newport Beach proving that Costa Mesa, Huntington Beach and Newport Beach or beach/coastal cities are in strong demand. Orange County in general has the fastest Absorption Rate (2.31 months) in comparison to the other Southern California counties. All other stats remained pretty consistent although Active Listings, Dollar Volume was down below $500,000,000 for the first time.
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 Closed Sales Last Week came in with 6 Closed Sales. Down from 8 Closed Sales in the prior week and still in single digits for the last 3 weeks. One positive to take from the recent Closed Sales is the Average Days on the Market stat is still below 40 Days on Market. So any property that is selling is selling in a pretty short period of time. Out of the financed transactions, there was 1 transaction that used FHA financing and 1 transaction that used VA financing. The Total Number of Active Listings was down slightly but most other listings and inventory stats were pretty consistent with prior weeks.
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 remained consistent with 79 Closed Sales Last Week. The Absorption Rate increased from 4.3 months to 4.83 months while the Closed Sales - Average Days on Market hovered in the 50-60 Days on the Market range. Overall listing inventory has been down slightly in the last 3 weeks but Active Listings, Dollar Volume has been up over the same time period. The Active Under Contract Last Week and Pending Listings Last Week stats were normal, so sales activity isn't showing any signs of slowing.
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 at 2.47 months is second behind Orange County multifamily Absorption Rate. The Closed Sales - Average Days on the Market stat is the lowest among the 5 Southern California counties with an average of just 36 days. With 9 Closed Sales Last Week being purchased At or Above Asking Price and low Average Days on the Market San Diego County multifamily is highly competitive among investors. The Total Number of Active Listings and Active Listings, Dollar Volume stats remained consistent but Months of Inventory jumped from 12 months to 16 months.
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 12 Closed Sales Last Week. The highest number of Closed Sales in one week for quite a while. There were 8 Closed Sales Last Week that Sold At or Above the Asking Price. Again showing strong investor demand for Riverside County multifamily. Of the Closed Sales, there were two purchases made using FHA finanacing. The Total Number of Active Listings and Months of Inventory stats were almost unchanged showing the activity level in the near future should remain fairly consistent with past activity.
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 Bernadino County multifamily stats show smooth and consistent sailing here as most stats are coming in as they have been for the past several weeks. We did see a significant increase in the Average Days to Sell stat where it's now up to 64 days after being down to just 39 days last month. San Bernadino County multifamily typically sees dramatic swings in Average Days on Market from month to month.
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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