OC Apartment Brokers
SoCal Multifamily Sales Pulse -August 22, 2021 - August 28, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
Why The Overturned Eviction Moratorium May Be
Too Little, Too Late For Both Renters, Landlords
The Supreme Court’s decision last week to strike down the pandemic-era eviction moratorium may arrive too late for many struggling independent landlords, even as it appears to heighten the risk of eviction for tenants behind on their rent.
Thursday’s decision by the U.S. high court found that the Centers for Disease Control and Prevention (CDC) lacks authority under federal law to impose an eviction ban, which was set to expire on October 3. The court stressed that Congress, rather than the CDC, must specifically authorize an eviction policy.
At least half a dozen states, including New Jersey, California, New York and Washington, have policies in place to protect renters to help keep families in their homes.
“You just can't flip a switch and evict people,” said Paul Getty, CEO of First Guardian Group, a real estate investment and broker firm. The eviction process could take up months because of the backlog and the court systems, he explained.
However, the ruling doesn’t mean renters in states without protections will be immediately removed from their homes — an outcome that appears all but certain to prolong the pain for “mom and pop” landlords struggling with mounting costs, some of whom haven’t been paid by tenants in over a year.
While eviction filings are expected to ramp up, it is unclear how quickly already backlogged courts can process new filings, or how effective the remaining patchwork of state and local protections will be in keeping renters in place until they secure rent relief.
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Orange County
Orange County multifamily had 18 Closed Sales Last Week. This is a little more than average for the number of closed sales for Orange County but this was probably caused by an overflow from the prior weeks' closed sales totaling a low of only 7 closed sales. Out of the 18 closed sales 11 of the closed sales were located in a coastal city. The number of closed sales were pretty evenly divided up between duplexes, triplex’s, fourplexes, and 5+ units.
One sale of note was the sale of a Covington style 4 plex located on Louise Circle in Garden Grove. The property was initially listed at $1,749,500 and sold immediately after hitting the market at $1,740,000 all cash.
One other sale of note was the sale of a 4 plex on French St. in Santa Ana. The property was listed at $949,000 and ended up selling in 5 days at $1,025,000. The property was built in 1910 and is located in what’s known as the French Park area of Santa Ana. The unit mix is one 3 bedroom 2 bath and three 1 bedroom 1 bath units.
Orange County’s listing inventory remained pretty steady with 11 New Listings Last Week. Months of Inventory remained at 4 months but the Total Number of Active Listings dropped to the lowest level we’ve seen in over a month at just 147 active listings.
List of Closed Sales
Southern California
Long Beach multifamily had 7 Closed Sales Last Week. This is somewhat average for Long Beach as closed sales can sometimes fluctuate between 6-14 closed sales per week. Closed Sales - Average Days on Market remained about normal at 47 days.
One sale of note was the sale of a duplex located on Quincy Ave. in Belmont Shores. The property was initially listed at $1,575,000 and sold for $1,675,000 in 17 days. Both units were 2 bedroom 1 bath. The seller lived in one of the units and the other unit was used as a short-term rental that produced approx. $50,000 yearly.
The Long Beach multifamily listing inventory had 11 New Listings Last Week. This brought the Total Number of Active Listings to 99 listings and kept the Total Number of Active Listings below 100 for the third consecutive week.
List of Closed Sales