SoCal Multifamily Sales Pulse - April 26, 2021 - May 2, 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

CRE Doesn’t Have to Worry About Inflation Yet

While there are widespread concerns about inflation, so far, the rise in interest rates has been because of better growth prospects, according to Cushman & Wakefield. Those positive dynamics also mean good things for real estate fundamentals.

Right now, the market is indicating that “unanchored inflation” is unlikely, according to Cushman & Wakefield. It says low interest combined with transparency from The Federal Open Market Committee justifies the valuation of interest-rate sensitive assets.

Despite the pandemic, there has been little movement in headline cap rates since December 2019. Across product types, cap rate spreads are elevated above the long-term average by about 100 basis points. “This indicates an ability to absorb upward movement in the cost of capital without imminent pricing downsides,” according to C&W.

Even if inflation isn’t a concern yet,  supply chain and construction costs are rising. That means higher build-out costs for occupiers and higher budgets for inputs for developers, according to C&W. Still, C&W says the cost of financing will be supported by accommodative monetary policy.

Orange County

Orange County multifamily Closed Sales Last Week was up again last week with 18 total closed Sales. Orange County multifamily's Absorption Rate increased slightly from last month to 2.12 months, but it's still extremely low with Average Days on Market at just 38 days. The monthly Average Days on Market dropped to just 33 days. If your property hasn't sold in 30 days or less it means it's probably overpriced. The Monthly Average Cap Rate and Average Gross Multiplier were unchanged from last month. Months of Inventory increased to 3 months while Total Number of Active Listings dropped to 138 listings.

Orange County Closed Sales - MikeLembeck.com

Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version

Absorption Rate: 2.12 months
Avg. Cap Rate: 4.29%
Avg. Gross Rent Multiplier: 14.95
18
Closed Sales Last Week
38
Closed Sales - Average Days on Market
$1,675,188
Closed Sales - Average Sales Price
7
Transactions Sold At or Above Asking Price
13
Financed Transactions Last Week
5
All Cash Transactions Last Week
14
2-4 Unit Transactions Last Week
4
5+ Unit Transactions Last Week

13
New Listings Last Week
3
Months of Inventory
138
Total Number of Active Listings
$531,136,424
Active Listings, Dollar Volume
14
Active Under Contract Last Week
9
Pending Listings Last Week
11
Expired Listings Last Week

Long Beach

Long Beach multifamily sales stayed about average last week with 10 Closed Sales. Closed Sales - Average Days on Market increased to 80 days while the Absorption Rate went from 2.12 months last month to 2.2 months currently. The Monthly Average Cap Rate was unchanged and the Average Gross Multiplier was up slightly from last month to 14.21 times gross. The Total Number of Active Listings was consistent with 110 total listings but the Months of Inventory dropped from 4 months to 3 months. 

Long Beach Closed Sales - MikeLembeck.com

Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version

Absorption Rate: 2.2 months
Avg. Cap Rate: 4.76
Avg. Gross Rent Multiplier: 14.21
10
Closed Sales Last Week
80
Closed Sales - Average Days on Market
$1,451,000
Closed Sales - Average Sales Price
3
Transactions Sold At or Above Asking Price
8
Financed Transactions Last Week
2
All Cash Transactions Last Week
7
2-4 Unit Transactions Last Week
3
5+ Unit Transactions Last Week

9
New Listings Last Week
3
Months of Inventory
110
Total Number of Active Listings
$247,658,509
Active Listings, Dollar Volume
7
Active Under Contract Last Week
7
Pending Listings Last Week
2
Expired Listings Last Week

Los Angeles County

Los Angeles County multifamily had an increase in Closed Sales Last Week to 101 closed sales. That's an increase from the prior two weeks where there were only 87 and 69 closed sales. Closed Sales - Average Days on Market remained similar to prior months at just 46 days. The Monthly Average Cap Rate, Average Gross Multiplier and Absorption Rate were almost unchanged from last month. Total Number of Active Listings dropped due to the typical month-end increase of expired listings. 

Los Angeles County Closed Sales - MikeLembeck.com

Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version

Absorption Rate: 3.93 months
Avg. Cap Rate: 4.76%
Avg. Gross Rent Multiplier: 14.21
101
Closed Sales Last Week
46
Closed Sales - Average Days on Market
$1,332,886
Closed Sales - Average Sales Price
42
Transactions Sold At or Above Asking Price
86
2-4 Unit Transactions Last Week
15
5+ Unit Transactions Last Week

146
New Listings Last Week
10
Months of Inventory
1,666
Total Number of Active Listings
$7,789,894,077
Active Listings, Dollar Volume
55
Active Under Contract Last Week
47
Pending Listings Last Week
90
Expired Listings Last Week

San Diego County

San Diego County multifamily sales increased again with 24 Closed Sales Last Week. This marks a weekly high not seen for quite a few months. San Diego County multifamily's Absorption Rate dropped from 2.5 months to just 1.71 months. This is the lowest Absorption Rate for any of the five Southern California counties. San Diego County multifamily continues to have increased investor interest and demand. Months of Inventory went from 14 months to 11 months while overall there was an increase in the Total Number of Active Listings to 151 listings. 

San Diego County Closed Sales - MikeLembeck.com

Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version

Absorption Rate: 1.71 months
Avg. Cap Rate: 4.73%
Avg. Gross Rent Multiplier: 14.0
24
Closed Sales Last Week
45
Closed Sales - Average Days on Market
$1,397,771
Closed Sales - Average Sales Price
15
Transactions Sold At or Above Asking Price
20
Financed Transactions Last Week
4
All Cash Transactions Last Week
23
2-4 Unit Transactions Last Week
1
5+ Unit Transactions Last Week

26
New Listings Last Week
11
Months of Inventory
151
Total Number of Active Listings
$1,193,470,643
Active Listings, Dollar Volume
2
Active Under Contract Last Week
16
Pending Listings Last Week
3
Expired Listings Last Week

Riverside County

Riverside County multifamily Closed Sales Last Week was about normal with 9 Closed Sales Last Week. But there was an increase in Average Days on Market to 71 days where it's typically around 25-35 days. But the Average Monthly Days on Market dropped to just 39 days. Months of Inventory decreased from 4 months to 3 months. The Monthly Average Cap Rate and Average Gross Multiplier were unchanged while the Absorption Rate was higher at 2.44 months.

Riverside County Closed Sales - MikeLembeck.com

Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version

Absorption Rate: 2.44 months
Avg. Cap Rate: 5.81%
Avg. Gross Rent Multiplier: 11.62
9
Closed Sales Last Week
71
Closed Sales - Average Days on Market
$718,556
Closed Sales - Average Sales Price
3
Transactions Sold At or Above Asking Price
9
Financed Transactions Last Week
0
All Cash Transactions Last Week
7
2-4 Unit Transactions Last Week
2
5+ Unit Transactions Last Week

9
New Listings Last Week
3
Months of Inventory
87
Total Number of Active Listings
$506,790,858
Active Listings, Dollar Volume
1
Active Under Contract Last Week
5
Pending Listings Last Week
2
Expired Listings Last Week

San Bernardino County

San Bernardino County multifamily sales stayed about normal with 12 Closed Sales Last Week. Of the 12 Closed Sales Last Week 8 were Transactions Sold At or Above Asking Price. The Monthly Average Cap Rate and Average Gross Multiplier were unchanged while the Absorption Rate increased to 2.62 months from 2.12 months previously. Overall inventory levels remained about the same, hovering around 130 + or - total listings. With the Absorption Rate time frame increasing the Months of Inventory increased from 6 months to 8 months.

San Bernardino County Closed Sales - MikeLembeck.com

Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version

Absorption Rate: 2.62 months
Avg. Cap Rate: 6.28%
Avg. Gross Rent Multiplier: 9.47
12
Closed Sales Last Week
51
Closed Sales - Average Days on Market
$671,833
Closed Sales - Average Sales Price
8
Transactions Sold At or Above Asking Price
7
Financed Transactions Last Week
5
All Cash Transactions Last Week
9
2-4 Unit Transactions Last Week
3
5+ Unit Transactions Last Week

14
New Listings Last Week
8
Months of Inventory
131
Total Number of Active Listings
$195,583,540
Active Listings, Dollar Volume
4
Active Under Contract Last Week
8
Pending Listings Last Week
4
Expired Listings Last Week

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