SoCal Multifamily Sales Pulse - December 28, 2020 - January 3, 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
Nearly 90% of renters paid up in December. Rent collections are down 3.4.% year over year. Call it another casualty of COVID-19: rent collections have fallen 3.4% year-over-year in December 2020. Payments have slid more year-over-year in December than in April through November, underscoring the struggle of many American households to make ends meet. Everyone expects a rocky ride for the US economy for the first half of 2021 as the vaccine is distributed and policymakers weigh steps to boost the economy.
The pandemic accelerated changes already in play across the real estate industry, specifically for retail and office spaces. As a result of COVID-19, tenant leases were canceled, and smaller office spaces emerged. Entertainment venues and warehouse distribution centers replaced empty anchor mall stores and vacant big-box retail outlets. High-rise condominiums replaced former commercial offices.
Collectively, the industry has always exhibited the resilience and creativity needed to repurpose assets and fast track construction when necessary. In 2021, they’ll do it again.
Orange County
There were 10 Closed Sales last week. Not a bad amount of sales for a short week. Orange County still remains one of the strong areas for multifamily demand and sales in Southern California. There were 22 Expired Listings last week due to most listings expiring on the last day of 2020. This is normal for almost every year. Sellers list their property for approx. 3, 6 or 12 months and set the expiration for the end of the calendar year.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
Long Beach
There were 10 Closed Sales last week in Long Beach compared to 8 in the prior week. Only 4 New Listings last week due to the holiday week. Total listing inventory in Long Beach went from 120 the prior week to 112 last week. Overall listing inventory is holding steady but still low. I'd anticipate the inventory to remain low for most of January 2021 and increase as the year progresses.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
Los Angeles County
The biggest stat that jumps out from last week is the number of transactions that sold at or above the asking price. Of the 67 Closed Sales last week, 31 sold at or above the asking price. That's almost 1/3 of the Closed Sales. That is strong demand for Los Angeles County multifamily. Another stat to keep an eye on is The Days to Sell Average. This has gone from 45 days in July 2020 to 59 days in December 2020 and has increased every month since July 2020. The Number of New Listings has dropped for 3 consecutive months - since September 2020 the number has gone from 961 new listings in September 2020 to just 533 new listings in December. Looking back over the last 4 years this same loss of new listings has occurred every year around September/October.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
San Diego County
San Diego Counties Average Days to Sell has remained the same at 33 days for the last 3 months. While the Number of Active Listings has remained right around 1,000 to 1,075 during the same time. As with all the other So Cal counties, the number of new listings has decreased since September 2020. We saw a drop in the Total Number of Active Listings last week - from 173 the prior week to 149 last week. This looks to be mainly due to 28 listings becoming expired last week.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
Riverside County
Out of the 10 Closed Sales last week in Riverside County there were 4 that sold at or above the asking price. Combined with Days on Market at just 34 days, the stats are indicating Riverside County is a strong demand market.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
San Bernardino County
The Number of Active Listings in San Bernardino County has declined for 5 consecutive months. The overall trend of Active Listings has been on a downward trend since April 2019. During this time the Average Days to Sell has fluctuated between 43 and 73 days. Even though the Inland Empire is seeing strong demand, the listing inventory is still taking a while to sell. In comparison to other So Cal counties, it's about the same amount.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data
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