OC Apartment Brokers
SoCal Multifamily Sales Pulse - May 24, 2021 - May 30, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
Buyers and Sellers Are Not Blinking On Pricing
Deal volume for the multifamily sector may be performing well as the pandemic begins to resolve, but investment activity remains well below pre-COVID levels for all other asset classes except industrial.
A new analysis from Real Capital Analytics reveals that potential buyers are still wary about the pace of the economic recovery, and owners are “generally hesitant to sell at prices that would provide enough of a discount to address the buyer caution.”
The positive signs are out there, of course: commercial property sales were up 66% year-over-year in April, according to RCA data, showing deal activity is indeed climbing. The market “rarely grows that quickly,” according to Costello, “but the aberration here is not about deal volume in 2021; rather, it is a story about the pace of sales in 2020.”
“A year ago, we were on the precipice of the unknown,” Costello says. “The global economy froze as workers were sent home; commercial property deal volume cratered as investors were hesitant and the mechanics of completing deals faced challenges. Over the coming few months, year-over-year comparisons will be problematic as an indicator of market health because of this base for comparison. Looking instead at the level of deal activity relative to trends before the pandemic can paint a clearer picture about the state of the market.”
Orange County
Orange County multifamily Closed Sales Last Week were up to a high of 23 Closed Sales Last Week. The highest number of Closed Sales in recent weeks. Showing again that Orange County multifamily is in high demand with no signs of slowing down. We expect demand to continue for the foreseeable future. More than half of the Closed Sales Sold At or Above Asking Price. Inventory levels remained consistent with 14 New Listings and 136 Total Number of Active Listings.
List of Closed Sales
Southern California
Long Beach multifamily sales were down slightly from prior weeks with just 8 Closed Sales Last Week. It's back in the single digits for the first time in quite a while. Closed Sales - Average Days on Market was at a recent low at just 21 days. More than half of the Closed Sales Sold At or Above Asking Price. Total Number of Active Listings and Months of Inventory remained the same but Active Listings, Dollar Volume dropped below $230,000,000.
List of Closed Sales