SoCal Multifamily Sales Pulse - March 29, 2021 - April 4, 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
Multifamily month-over-month Absorption Rates declined across all Southern California counties except San Diego County. Long Beach saw the biggest decline - going from 4.57 months previously to just 2.12 months currently. Los Angeles County multifamily also saw a big decline - going from 4.83 months previously to 3.95 months currently. Orange County multifamily led the way with the lowest Absorption Rate coming in at just 1.98 months.
Average cap rates and gross multipliers saw only minor changes month-over-month. In some cases, there was no change at all.
Orange County
Orange County multifamily Closed Sales were down slightly with 14 Closed Sales last week while Closed Sales - Average Days on Market dropped to 55 days. The Total Number of Active Listings remained about the same but the Months of Inventory dropped to just 2 months due to the faster absorption rate over the last 30 days.
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 multifamily Closed Sales stayed consistent with14 Closed Sales Last Week. Closed Sales - Average Days on Market was also consistent at just 41 days. Of the 14 Closed Sales, there were 9 Transactions Sold At or Above Asking Price. The Absorption Rate for Long Beach multifamily dropped from 4.57 months previously to just 2.12 months. That's an extremely large drop and the largest drop of any area in Southern California. The Average Cap Rate and Average Gross Rent Multiplier were unchanged from the previous month. The Total Number of Active Listings dropped to 100 listings and Months of Inventory dropped to 4 months where previously it was at 7 Months of Inventory.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Los Angeles County
There were 111 Closed Sales Last Week in Los Angeles County. That's up from 74 Closed Sales in the previous week and 82 Closed Sales in the week before. Los Angeles County multifamily continues to lead the way in the total number of weekly sales by a large margin. Closed Sales - Average Days on Market was consistent with prior weeks at just 50 Average Days on Market. New Listings Last Week were down to just 107 New Listings. The typical weekly average is around 140-160 new listings. With the Absorption Rate so low the Months of Inventory dropped from 14 months previously to 10 months currently. And the Total Number of Active Listings was down from 1,730 previously to 1,642 Active Listings currently. The large increase in Expired Listings Last Week was due to listings expiring at the end of the month, which is normal as a lot of sellers have listing periods that end on the last day of a month.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
San Diego County
There were 13 Closed Sales Last Week in San Diego County multifamily. The Closed Sales - Average Days on Market was down again this week to just 27 days. This is the lowest Closed Sales - Average Days on Market for any county in Southern California. With 11 Transactions Sold At or Above Asking Price and such a short Average Days on the Market there's a lot of competition for San Diego County multifamily properties. With Months of Inventory dropping from 18 months previously to 14 months currently, the completion probably won't change much anytime soon.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Riverside County
There were 13 Riverside County multifamily Closed Sales Last Week. This is the same amount of Closed Sales as the prior week which was higher than normal. Of the financed Closed Sales 3 of the sales were FHA financed sales. The Average Cap Rates and Average Gross Rent Multiplier both were slightly down. The Months of Inventory was down from 5 months previously to 4 months currently. The Total Number of Active Listings went up just slightly with 92 Active Listings currently for sale.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
San Bernardino County
San Bernardino County multifamily had 15 Closed Sales Last Week. This is a high watermark for Closed Sales in recent weeks. There were 9 Transactions Sold At or Above Asking Price - another high watermark for this stat. San Bernardino County multifamily's Absorption Rate was tied with Long Beach for 2nd overall in lowest Southern California Absorption Rate. The Months of Inventory has dropped consistently over the last 3 weeks while the Total Number of Active Listings has remained fairly steady averaging around 120 listings.
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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