OC Apartment Brokers
SoCal Multifamily Sales Pulse - December 7, 2020 - December 13, 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
These two factors are key indicators for the current rental market:
1. Contrary to some reports, multifamily occupancies remain high. Data compiled from more than one million market-rate units suggest that in recent months, many tenants moved from single-bedroom units to studios (in an effort to downsize) or to two-bedroom units (consolidating households to share costs).
2. The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 75.4 percent of apartment households made a full or partial rent payment by December 6 in its survey of 11.5 million units of professionally managed apartment units across the country. While the initial rent collection figures for the first week of December are concerning, only a full month's results will paint a complete picture (see chart below). However, it should not come as a surprise that a rising number of households are struggling to make ends meet.
The recent news that legislators in Congress may be coming closer to finding common ground is encouraging, but it is critical that any package includes meaningful rental assistance and other critical support such as an extension of unemployment benefits and short-term liability protections. At the same time, lawmakers should be cautious of extending eviction moratoria – an approach that will only result in untenable amounts of debt for households across the country.
Orange County
This past week saw 12 closed sales in Orange County. The 12 closed sales is typical for Orange County in a normal week so it looks like activity is holding steady even with all the new COVID cases and the renewed lockdown orders for So Cal. But these were all transactions that started prior to the increased COVID activity and renewed lockdown. Of the 12 closed sales, 4 sold for more than the original asking price. There were 3 closed sales in Santa Ana and the rest were scattered throughout different cities in Orange County. 3 of the closed sales were sold in 4 days on the market or less. The average days on the market last week was 35 days. All 12 of the sales this past week used financing to purchase. 10 of the 12 sales were 2-4 units, one was a 5 unit building and one was a 24 unit building. There were a total of 18 new listings to come on the market this week and 12 closed sales. This gives the market a net positive increase in the inventory of 6 new listings.
Southern California
There were only 6 new closed sales last week in Long Beach. This is down from 9 closed sales in the prior week and is low considering the average amount of closed sales per week is from 8-12. Of the 6 sales, 4 were at or above the original asking price. All purchases closed using financing. The average number of days on the market for closed sales this week was 77. This stat was inflated due to one of the closed sales being on the market for 382 days. Without factoring in this closed sale the average days on the market were just 15 days. There were a total of 11 new listings to come on the market this week and 6 closed sales. This gives the market a net positive increase in the inventory of 5 new listings.
