SoCal Multifamily Sales Pulse - September 5, 2021 - September 11, 2021
Disclaimer: All information contained herein is obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only. We make no claim(s) as to the accuracy or reliability of the information presented. If you wish for us to analyze your specific property or situation please feel free to call or email us anytime.
Here's What's Happening In The Market, Here’s What This Means For You
Data Is Everything, Right?
If you don’t have the best real estate market data and trends, it’s tough to make the smartest decision for buying and selling. Plus data is not cheap, but without it, you could be leaving money on the table or over-paying for a property. Take advantage of the data sources we have available. Let me be your resource for analyzing a property you're considering purchasing or selling to help make sure you're getting the best deal possible.
Orange County multifamily had 8 Closed Sales Last Week. This is quite a low number of weekly sales for Orange County. Orange County closed sales typically average around 12-16 closed sales per week. This low number of closed sales may have been caused by the short week created by the Labor Day holiday. The Closed Sales - Average Days on Market was 57 days. This is above normal for average days to sell. This stat usually runs somewhere between 30-45 days.
There were two SALE OF THE WEEK properties this week for Orange County. The first one in a 4 plex on Meats Ave. in Orange. The property was originally listed at $1,500,000 and sold all cash for $1,550,000 in 5 days. The unit mix consisted of two 3 bedroom 2 bath units and two 2 bedroom 1 bath units. The property is located in a good area close to Chapman University and St. Joseph Hospital. There was fire damage in the laundry room and upper 3 bedroom 2 bath unit that was in the process of being restored by Insurance company while the property was on the market. The insurance company also replaced the roof on the entire building. The property sold at just under $415 per sq. ft.
The second SALE OF THE WEEK for Orange County is a 4 plex in Huntington Beach on Delaware St. This property was originally listed for $1,795,000 and sold for $1,920,000 in 9 days. The unit mix consisted of one 3 bedroom 2 bath, one 2 bedroom 1.5 bath townhouse style unit, one 2 bedroom 1 bath and one 1 bedroom 1 bath unit. The property sold at $509 per sq. ft.
Looking at the listing inventory for last week. Orange County had 18 New Listings Last Week. This is a little bit higher than most weeks for new weekly listings. But the Total Number of Active Listings dropped further to 133 listings after being at 137 total listings in the prior week. Active Listings, Dollar Volume also continued to drop and is now down to just over $416,000,000. Months of Inventory remained at 2 months.
Long Beach multifamily had 6 Closed Sales Last Week. This is a low number of weekly sales but Long Beach has had weeks of 6 or 7 sales in 3 out of the last 5 weeks. The Closed Sales - Average Days on Market was pretty normal at 30 days. Out of the 6 Closed Sales Last Week there were 5 Transactions That Sold At or Above Asking Price. So, demand is still strong and buyers a paying a premium for Long Beach apartment buildings. Out of the 6 Financed Transactions Last Week there were two FHA financed transactions.
This week's Long Beach SALE OF THE WEEK is a 4 plex on Park Ave. Built in 1941. The property was listed at $1,950,000 and sold at asking price in 56 days. Located in Alamitos Heights and right next to Long Beach's Recreation Park Golf Course. The property is beautifully landscaped and all units were remodeled with new flooring, fixtures, granite countertops, stainless steel appliances, water heaters and air conditioning. The property sold at $604 per sq. ft. The Long Beach Average Price Per Sq. Ft for last month was $513.
Looking at the Long Beach listing inventory there were 11 New Listings Last Week. Just about normal for Long Beach weekly listings. But this puts the Total Number of Active Listings to 104 listings and above 100 listings for the first time in several months. Months of Inventory remained at 3 months. Active Listings, Dollar Volume was similar to the prior week at just above $230,000,000.
Los Angeles County
Los Angeles County multifamily had 77 Closed Sales Last Week. This is a low number of weekly sales for Los Angeles County. LA County typically averages closer to 100 weekly sales. We’ve seen the number of weekly sales for LA County drop between 70-90 closed sales for 4 out of the last 5 weeks. Closed Sales - Average Days on Market was in the normal range at 43 days. As is fairly common for the weekly closed sales in LA County there were almost half, or 34 of the Transactions That Sold At or Above Asking Price.
The Los Angeles County SALE OF THE WEEK was a 9 unit building on Walter St. located in Huntington Park. The property was listed at $1,695,000 and sold at list price in 116 days. The units were eight 1 bedroom 1 bath units and one 2 bedroom 1 bath units. All units are single-story bungalow-style units. The property has undergone some modern upgrades such as kitchen and bathroom remodels, newer windows, plumbing and electrical updates. There is an opportunity for the buyer to add value by implementing a creative management strategy as the rental upside for the property is approximately 25%.
Listing inventory for LA County multifamily had 110 New Listings Last Week. A little on the low side for LA County weekly listings. New weekly listings typically average around 120-150 new listings. The Total Number of Active Listings remained below 1,800 again this week for the second consecutive week. Active Listings, Dollar Volume moved above $8,721,000,000 for the first time ever.
San Diego County
San Diego County multifamily had just 8 Closed Sales Last Week. This is the lowest number of weekly sales for San Diego County in over 2 months. Weekly closed sales typically average around 14-18 closed sales per week. This might be from the short week created by the Labor Day holiday. The Closed Sales - Average Days on Market was 46 days. This is above normal due to one closed sale being on the market for 284 days. If we remove this one closed sale the days on market drops to just 12 days – which is normal for San Diego County.
Listing inventory for San Diego County multifamily had another strong week with 26 New Listings Last Week. With 204 Total Number of Active Listings that moved the count back over 200 active listings after dropping to 196 listings in the prior week. The Months of Inventory remained the same at 11 months.
Riverside County multifamily had 8 Closed Sales Last Week. This is considered a strong week of sales since the most recent weeks have averaged between 3-6 closed sales. Closed Sales - Average Days on Market was 62 days. This is about twice the normal number of days due to 3 of the closed sales being on the market for over 100 days. Typical days on market for Riverside County is about 30 days plus or minus.
Listing inventory increased by 8 New Listings Last Week bringing the Total Number of Active Listings to 97 listings. This drops the Total Number of Active Listings back down below 100 after it hit 100 active listings in the prior week. Riverside County's weekly listing inventory typically runs between 95-105 listings per week. Active Listings, Dollar Volume increased to over $595,000,000 for the first time ever. Months of Inventory remained the same at 4 months.
San Bernardino County
San Bernardino County multifamily had 12 Closed Sales Last Week. This number is about average for the number of weekly sales for San Bernardino County. Closed Sales - Average Days on Market was 21 days. This stat is also about average for San Bernardino County. Out of the 12 Closed Sales Last Week there were 7 Transactions That Sold At or Above Asking Price. San Bernardino County multifamily is one of the stronger areas with high demand from multifamily investors due to the low gross rent multipliers, high cap rates and increasing rents.
San Bernardino listing inventory had 16 New Listings Last Week. This brought the Total Number of Active Listings back up to 141 listings after dropping below 140 in the prior week. San Bernardino listing inventory is usually 140 listings or more on a weekly basis. Months of Inventory remained at 7 months.