OC Apartment Brokers
SoCal Multifamily Sales Pulse - December 14, 2020 - December 20, 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
After months of negotiations, congressional leaders finally announced on Sunday they reached an agreement on a $900 billion economic relief package, which includes $600 direct payments to Americans, aid for small businesses, and an extension of the moratorium on evictions that was set to expire at the end of the year. The $900 billion economic relief package will extend the moratorium on evictions until Jan. 31, 2021. The package also includes $25 billion in rental assistance.
Most investors agree that if a vaccine becomes widely available to the general public in 2021, it will turn the economy towards recovery. Almost 80% of investors are concerned about President-Elect Biden's tax plan as it relates to the 1031 exchange and other tax breaks in 2021.
Some of the trends that multifamily investors are predicting for 2021 include:
- An increase in demand for ADU's
- Feasible locations for living and working
- Migration away from Class A Multifamily
- Increase in rental housing for unemployed
- Rent control for multifamily
Orange County
This week's Orange County sales were all 2-4 unit buildings. With 16 closed sales last week the activity level is about normal for most weeks this year and above the average amount of transactions that are typical for this time of year. This means the Orange County apartment market is still humming along. Still a lot of demand but still a lack of inventory. Only 201 total Active Listings in all of Orange County. There were just 2 all CASH transactions but there were still 5 listings that sold at or above the asking price. With 12 listings going Under Contract it again illustrates the high demand for Orange County multifamily properties.
Southern California
Most of the closed sales this past week were 2-4 units (12 closed sales) with the other sales consisting of one sale of a 5 unit building and two 8 units buildings being sold. Of the 10 financed transactions, there were 3 that were financed using FHA loans. With the average days on the market being just 32 days, it shows that the activity level is still brisk for properties that are priced correctly for the market. Inventory was down from 134 active listings last week to 130 active listings this week so overall the inventory has remained pretty consistent but still lower than the previous months of September - November where we saw the active listings at about 177-187 listings.
