OC Apartment Brokers
SoCal Multifamily Sales Pulse - June 7, 2021 - June 13, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
Investors Face Inflationary Environment for the First Time in Years
Due in large measure to the rebound from the pandemic, inflation has re-emerged as an undeniable factor for investors to reckon with. And while commercial real estate has long been regarded as a potential route for investors looking to hedge against inflation risks, many market participants haven’t faced such a steep inflationary environment before.
“An entire generation of CRE market participants has heard more about the benefits of this inflation hedge than seen it in action,” said Ryan Severino, chief economist at JLL, noting that it has been well over a decade since the Great Recession. “With inflation subdued for such a long period, there haven’t been many chances for the sector to prove out its reputation.”
That’s changing. The Consumer Price Index rose 0.9% in April over the previous month, the fastest monthly rise since 1982. In May, the year-over-year growth in the inflation rate was 5%, the fastest annual increase since 2008.
Orange County
Orange County multifamily Closed Sales Last Week moved back up into a more normal range but is still lagging most prior weeks. Closed Sales - Average Days on Market at just 33 days is still showing strong interest in available properties.
Most Orange County multifamily Closed Sales Last Week consisted of 2 unit buildings or 4 unit buildings. A couple of larger building sales to note were the sale of 6 units in Huntington Beach on California St. that sold in just 3 days and sold $151,000 over the asking price. Another sale of note was a 10 unit building on Howard Ave. in Los Alamitos that sold in just 9 days at 97.9% of the asking price.
There were 15 New Listings Last Week. Of the 15 new listings, there were two 5+ unit buildings and the rest were 2-4 units. There were 10 out of the 15 new listings located in beach/coastal cities.
The Active Under Contract Listings Average Days on Market were only 20 days.
Inventory continued to creep up and is now at 143 Total Number of Active Listings. This is at a high for the last 3 weeks.
List of Closed Sales
Southern California
A strong week of Closed Sales for Long Beach multifamily. Six out of the nine Long Beach multifamily Closed Sales Last Week Sold At or Above the Asking Price. Six out of the nine Long Beach multifamily Closed Sales Last Week sold in 11 days or less. And Six out of the nine Long Beach multifamily Closed Sales Last Week were duplexes.
With 21 New Listings Last Week, the Total Number of Active Listings increased to 117 listings. Months of Inventory remained the same at 3 months.
List of Closed Sales