OC Apartment Brokers
So Cal Multifamily Sales Pulse - July 28, 2024 - August 3 , 2024
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Here's What's Happening In The Market, Here’s What This Means For You
| US July Payrolls Miss Expectations, Market Pricing in 50-bp Cut in September The market is now realizing that the economy is indeed slowing. |
Apartment Rent Growth: Still Positive and Still Decelerating It's a roller coaster of data to follow, with 0.2% month-over-month growth and a 0.8% drop year over year. |
| CRE Distress Rises to $94.2B in Q2 Office and apartment accounted for most of the new distress in the quarter. |
Volume and Pricing May Have Hit Bottom in Q2 'Light at the end of the tunnel' says MSCI, although volume may slide back to declines next quarter. |
| Renters Opting Not to Buy as Home Ownership Challenges Persist The gap between renting and buying has grown to roughly $1,290 per month. |
Are Construction Costs Stabilizing? Development activity is likely to intensify amid labor constraints. |
| A Subdued Outlook Prevails The result of the coming Presidential election in November should provide further clarity for investors going forward. |
Market Tightness Hits 2-Year High While vacancies are still rising and rent growth is low, some pros feel the market is at a turning point. |
| Eye-Popping Construction Costs Intensify California’s Chronic Housing Shortage It’s not hyperbole to declare that California’s most serious economic, social and political issue is its chronic shortage of housing. |
The Renewed Face of Housing Is Tenant Evictions After the end of pandemic aid and eviction moratoriums, things are either up to pre-pandemic norms or far over. |
| Multifamily Nears Inflection Point The apartment sector's fundamentals could tighten more quickly than our current base case if the strong trends continue. |
Consumer Spending Drives Record Low Retail Vacancies Discount stores saw big traffic. |
| The Share of Young Adults Living at Home Continues to Rise Among young adults who live at home, the share who could comfortably afford to live independently has fallen dramatically. |
Lenders Turn Up the Foreclosure Heat on CRE It might be scary but there is also the possibility that markets are hitting their bottoms. |
| Is a Wave of Distressed Deals Ever Going to Come? Multifamily distress has tripled, but context matters. |
U.S. Manufacturing Surge Struggles Through Serious Slowdown U.S. manufacturers are facing fewer orders and stuffed inventories, leading to layoffs as they adjust to lower demand. |
| Powell Raises Hopes For September Rate Cut The Fed didn't explicitly signal any upcoming cuts, but the FOMC and Federal Reserve Chair Jerome Powell took a slightly rosier tone Wednesday than in past meetings. |
Office Loan Maturity Monitor: Mid-Year Update and a Peek at Future Maturities
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| Construction Job Openings Plummet 19% Analysts continue to attribute major changes in labor demand to residential construction, as the commercial sector retains momentum. |
Small Banks Say They Avoided A CRE Crisis. That Doesn't Mean They're Lending Again For the most part, regional and community banks tend to be bigger lenders of the suburban office market. And suburban has performed much better. |
| Home Sales Fall to Their Lowest Level Since the GFC Though home prices appreciated in May for the 11th consecutive month, the report found the pace is slowing. |
Fed Keeps Rates Flat, Signals a September Cut But it still comes down to what the data will look like, and disappointing reads could put cuts off. |
| UCLA Survey Predicts Rising CRE Distress A majority of California’s commercial real estate industry participants (71%) anticipate distress levels to rise in the coming months. |
More Homeowners Become 'Equity Rich' Equity levels piggybacked on some of the biggest home-price spikes we've seen in recent years. |
| A New Limit On Rent Increases Takes Effect Today. What To Expect As of Aug. 1, the rent cap is 8.9% for L.A. County residents not covered by more restrictive local rules. |
Orange County
6
Closed Sales Last Week
21
Closed Sales - Average Days on Market
$2,151,917
Closed Sales - Average Sales Price
3
Transactions Sold At or Above Asking Price
3
Financed Transactions Last Week
3
All Cash Transactions Last Week
6
2-4 Unit Transactions Last Week
0
5+ Unit Transactions Last Week
20
New Listings Last Week
8
Months of Inventory
288
Total Number of Active Listings
$976,315,047
Active Listings, Dollar Volume
5
Active Under Contract Last Week
3
Pending Listings Last Week
10
Expired Listings Last Week
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Southern California
8
Closed Sales Last Week
47
Closed Sales - Average Days on Market
$1,398,750
Closed Sales - Average Sales Price
3
Transactions Sold At or Above Asking Price
6
Financed Transactions Last Week
2
All Cash Transactions Last Week
5
2-4 Unit Transactions Last Week
3
5+ Unit Transactions Last Week
11
New Listings Last Week
8
Months of Inventory
171
Total Number of Active Listings
$484,550,607
Active Listings, Dollar Volume
2
Active Under Contract Last Week
7
Pending Listings Last Week
4
Expired Listings Last Week
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