OC Apartment Brokers
SoCal Multifamily Sales Pulse - November 30, 2020 - December 6, 2020
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
Property pricing has firmed up over the past few months. In some area's it’s above, or close to, pre-Covid levels and only the harder-hit property types remain down 10% or more. With interest rates this low—and a vaccine coming—that’s not surprising.
With rising COVID-19 cases and President-elect Joe Biden poised to assume the presidency in January, investors are eyeing the future with apprehension. There's concern regarding President-elect's tax plan and implications on 1031 exchanges.
Something to keep an eye on - with the potential for attaching rent relief funding to a spending bill needed to avoid a government shutdown, there's the possibility of federal rent relief by year’s end.
Orange County
Last week we saw more sales than typical for Orange County due to the sales that were backed up from last week's short week. Orange County had 17 closed sales consisting of 2-4 unit buildings, 6, 8, 10, and 16 unit buildings. Only one of the sales closed at higher than the original asking price. The location of this week's sales was mainly in Dana Pont (4) and Anaheim (4). The average number of Days on the Market for last week's sales was 83 days, with one property taking 362 days to sell. Four of the closed sales were CASH transactions and the rest were purchased with financing. There was even one closed sale where the owner carried the new 1st TD. We still have a strong Sellers Market due to the lack of inventory and I'm not anticipating that to change anytime soon. We saw only 10 new listings come on the market last week. So with 17 closed sales and only 10 new listings, we had a negative loss of inventory.
Southern California
Long Beach had a total of 9 closed sales compared to the week before where there were 8 closed sales. The average number of Days on the Market for last week's sales was 35 days. The number of units selling ranged from 2 to 16. Two of the listings sold at the asking price, only one sold at over the asking price, while the rest sold below the original asking price. All listings sold in 50 days or less except one listing that sold in 103 days. Two closed sales were CASH sales and the rest were purchased with financing. We saw only 5 new listings come on the market last week compared to 9 closed sales which created a negative loss of inventory.
