SoCal Multifamily Sales Pulse - November 30, 2020 - December 6, 2020
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Here's What's Happening In The Market, Here’s What This Means For You
Property pricing has firmed up over the past few months. In some area's it’s above, or close to, pre-Covid levels and only the harder-hit property types remain down 10% or more. With interest rates this low—and a vaccine coming—that’s not surprising.
With rising COVID-19 cases and President-elect Joe Biden poised to assume the presidency in January, investors are eyeing the future with apprehension. There's concern regarding President-elect's tax plan and implications on 1031 exchanges.
Something to keep an eye on - with the potential for attaching rent relief funding to a spending bill needed to avoid a government shutdown, there's the possibility of federal rent relief by year’s end.
Orange County
Last week we saw more sales than typical for Orange County due to the sales that were backed up from last week's short week. Orange County had 17 closed sales consisting of 2-4 unit buildings, 6, 8, 10, and 16 unit buildings. Only one of the sales closed at higher than the original asking price. The location of this week's sales was mainly in Dana Pont (4) and Anaheim (4). The average number of Days on the Market for last week's sales was 83 days, with one property taking 362 days to sell. Four of the closed sales were CASH transactions and the rest were purchased with financing. There was even one closed sale where the owner carried the new 1st TD. We still have a strong Sellers Market due to the lack of inventory and I'm not anticipating that to change anytime soon. We saw only 10 new listings come on the market last week. So with 17 closed sales and only 10 new listings, we had a negative loss of inventory.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
Long Beach
Long Beach had a total of 9 closed sales compared to the week before where there were 8 closed sales. The average number of Days on the Market for last week's sales was 35 days. The number of units selling ranged from 2 to 16. Two of the listings sold at the asking price, only one sold at over the asking price, while the rest sold below the original asking price. All listings sold in 50 days or less except one listing that sold in 103 days. Two closed sales were CASH sales and the rest were purchased with financing. We saw only 5 new listings come on the market last week compared to 9 closed sales which created a negative loss of inventory.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
Los Angeles County
Los Angeles County had a total of 94 closed sales. This was a high number of closed sales for the week due to the sales that were backed up from last week's short week. The majority of the closed sales were 2-4 units. Of the 94 closed sales, 18 were 5+ units. The average number of Days on the Market for last week's sales was 48 days with one property taking 399 days to sell. We saw 162 new listings hit the market resulting in a net positive gain of 68 listings for the week. That's a huge number of new listings hitting the market for December.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
San Diego County
San Diego County had 13 closed sales. All these sales were 2 and 3 unit buildings. The average Days on the Market was 44 Days. Four of the closed sales in San Diego County were above the original asking price and the rest were below the original asking price. With 13 total closed sales last week and 21 new listings coming on the market there was a net positive increase in inventory. Three of the closed sales were purchased all CASH and the rest were financed. Of the financed sales, three buyers used VA financing.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
Riverside County
Riverside County had a total of 9 closed sales. Two of the sales sold at the original asking price and the rest sold below the original asking price. The average number of Days on the Market for last week's sales was 47 days. There are 120 active listings and the absorption rate allows for 16 months of inventory. With 9 closed sales last week and 5 new listings we see another negative loss of inventory. Four of the closed sales were purchased all CASH while the rest were financed. Two of the closed sales sold at the asking price and the rest sold below the original asking price.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
San Bernardino County
San Bernardino County had 7 closed sales. Two of the closed sales were above the original asking price. Two of the 7 closed sales were purchased all CASH and the rest used financing. The number of units in the sales numbered from 3-8 units. The lowest sale price was $249,000 and the highest sale price was $1,275,000. The average Days on Market for the closed sales was 65. There were 15 new listings added. So with the 7 closed sales last week there was a net positive increase of 8 listings in inventory.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
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