OC Apartment Brokers
SoCal Multifamily Sales Pulse - December 28, 2020 - January 3, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
Nearly 90% of renters paid up in December. Rent collections are down 3.4.% year over year. Call it another casualty of COVID-19: rent collections have fallen 3.4% year-over-year in December 2020. Payments have slid more year-over-year in December than in April through November, underscoring the struggle of many American households to make ends meet. Everyone expects a rocky ride for the US economy for the first half of 2021 as the vaccine is distributed and policymakers weigh steps to boost the economy.
The pandemic accelerated changes already in play across the real estate industry, specifically for retail and office spaces. As a result of COVID-19, tenant leases were canceled, and smaller office spaces emerged. Entertainment venues and warehouse distribution centers replaced empty anchor mall stores and vacant big-box retail outlets. High-rise condominiums replaced former commercial offices.
Collectively, the industry has always exhibited the resilience and creativity needed to repurpose assets and fast track construction when necessary. In 2021, they’ll do it again.
Orange County
There were 10 Closed Sales last week. Not a bad amount of sales for a short week. Orange County still remains one of the strong areas for multifamily demand and sales in Southern California. There were 22 Expired Listings last week due to most listings expiring on the last day of 2020. This is normal for almost every year. Sellers list their property for approx. 3, 6 or 12 months and set the expiration for the end of the calendar year.
Southern California
There were 10 Closed Sales last week in Long Beach compared to 8 in the prior week. Only 4 New Listings last week due to the holiday week. Total listing inventory in Long Beach went from 120 the prior week to 112 last week. Overall listing inventory is holding steady but still low. I'd anticipate the inventory to remain low for most of January 2021 and increase as the year progresses.
