SoCal Multifamily Sales Pulse - May 24, 2021 - May 30, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
Buyers and Sellers Are Not Blinking On Pricing
Deal volume for the multifamily sector may be performing well as the pandemic begins to resolve, but investment activity remains well below pre-COVID levels for all other asset classes except industrial.
A new analysis from Real Capital Analytics reveals that potential buyers are still wary about the pace of the economic recovery, and owners are “generally hesitant to sell at prices that would provide enough of a discount to address the buyer caution.”
The positive signs are out there, of course: commercial property sales were up 66% year-over-year in April, according to RCA data, showing deal activity is indeed climbing. The market “rarely grows that quickly,” according to Costello, “but the aberration here is not about deal volume in 2021; rather, it is a story about the pace of sales in 2020.”
“A year ago, we were on the precipice of the unknown,” Costello says. “The global economy froze as workers were sent home; commercial property deal volume cratered as investors were hesitant and the mechanics of completing deals faced challenges. Over the coming few months, year-over-year comparisons will be problematic as an indicator of market health because of this base for comparison. Looking instead at the level of deal activity relative to trends before the pandemic can paint a clearer picture about the state of the market.”
Orange County
Orange County multifamily Closed Sales Last Week were up to a high of 23 Closed Sales Last Week. The highest number of Closed Sales in recent weeks. Showing again that Orange County multifamily is in high demand with no signs of slowing down. We expect demand to continue for the foreseeable future. More than half of the Closed Sales Sold At or Above Asking Price. Inventory levels remained consistent with 14 New Listings and 136 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
Long Beach
Long Beach multifamily sales were down slightly from prior weeks with just 8 Closed Sales Last Week. It's back in the single digits for the first time in quite a while. Closed Sales - Average Days on Market was at a recent low at just 21 days. More than half of the Closed Sales Sold At or Above Asking Price. Total Number of Active Listings and Months of Inventory remained the same but Active Listings, Dollar Volume dropped below $230,000,000.
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 were up to a recent high with 100 Closed Sales Last Week and 53 Transactions Sold At or Above the Asking Price. Prices are still high and will continue to be supported by new buyers every day. Even with 125 New Listings Last Week the Months of Inventory went from 10 months to 12 months. The Total Number of Active Listings and Active Listings, Dollar Volume stats both increased slightly last week but there's still plenty of competition for desirable properties.
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 sales remained steady with 13 Closed Sales Last Week. Closed Sales - Average Days on Market also reminded steady and low at just 32 Average Days on Market. With 27 New Listings Last Week the Total Number of Active Listings remained about the same with 159 Active Listings.
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 Closed Sales Last Week saw a minor increase with 12 Closed Sales Last Week. Closed Sales - Average Days on Market remained low at just 34 days. With 7 of the 12 Transactions Sold At or Above Asking Price there continues to be bidding wars on most properties regardless of the condition. Listing supply continues to be a major issue with 9 New Listings Last Week and just 89 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 County multifamily sales were down a bit but still strong with 12 Closed Sales Last Week. Closed Sales - Average Days on Market also reminded steady and low at just 38 Average Days on Market. Demand was strong once again as 8 of the 12 Closed Transactions Sold At or Above the Asking Price. The Months of Inventory increased slightly from 7 months to 8 months and there was a minor increase in the Total Number of Active Listings to 144 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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