SoCal Multifamily Sales Pulse - January 11, 2021 - January 17, 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
Stress from a winter wave of the coronavirus has weakened the economy and challenged some owners, as property income has been disrupted. Delinquency rates for mortgages backed by commercial and multifamily properties increased for the second month in a row in December, according to the Mortgage Bankers Association’s (MBA) latest monthly MBA CREF Loan Performance Survey. MBA developed the survey to better understand how the pandemic is impacting commercial mortgage loan performance.
We've seen vacancies climb as rents fall across asset classes. It's anticipated that apartment occupancy and rents should return to pre-pandemic levels by the end of this year, leading into 2022. A new report from Moody’s Analytics calls the dynamic “bleak, but not dire,” noting that while most metros are following a similar pattern, most of the declining fundamentals are more moderate than originally expected.
The Inland Empire’s multifamily market benefits greatly from its vicinity to Los Angeles and the Bay Area, with incoming residents from more expensive, denser markets driving demand and rent growth. Rents were the highest in the nation on a trailing three-month basis through October, up 1.2 percent to $1,669, while the U.S. average remained flat at $1,464.
Orange County
There were 12 Closed Sales last week in Orange County. What was noticeable about these sales was the Average Days on Market was just 9 days. It was a strong week of New Listings with 22 New Listings last week. Pushing the total Number of Active Listings from 166 to 182. Another stat that was up from normal was there were 11 new Active Under contract listings which means the demand for Orange County multifamily assets remains strong.
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 had 8 Closed Sales last week, matching the amount from the prior week. With 17 New Listings, inventory increased from 114 listings to 125 Total Number of Active Listings. With only 1 Active Under Contract Listing last week we might see a decrease in demand coming, so that's a good stat to watch in the coming weeks. Active Under Contract Listing and Pending Listing are stats that give an indication of future Closed Sales since the Closed Sales stat indicates buyer activity 30-60 days ago.
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 Closed Sales were down 10 from the prior week. Another trend to watch as Los Angles County multifamily sales have been strong up to this point. With 21 listings selling At or Above Asking Price indicating buyers are still willing to pay a premium for the right properties, but that was down from 31 listings selling At or Above Asking Price the prior week. The Total Number of Active Listings went from 1,682 the prior week to 1,834 last week. Active Under Contract, Pending Listings, and Expired Listings numbers were relatively unchanged.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
San Diego County
Not a lot of change for San Diego County multifamily sales last week. Most stats were fairly close to the prior week's activity. We're still seeing strong demand for San Diego County apartment buildings with 6 listings going Active Under Contract and 16 listings going Pending Listings Last Week.
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 had just 6 Closed Sales last week. Of the 6 closed Sales, there were two that were financed using FHA financing. The last 2 weeks of Closed Sales saw no All Cash Transactions as all purchases used financing. New Listings Last Week, Months of Inventory, Total Number of Active Listings, and Active Listings Dollar Volume were all relatively unchanged from the prior week.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
San Bernardino County
Only 6 Closed Sales last week in San Bernardino County. Of the 6 Closed Sales, there were 3 Closed Sales financed with VA financing. New Listings Last Week, Months of Inventory, Total Number of Active Listings, and Active Listings Dollar Volume were all relatively unchanged from the prior week.
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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