OC Apartment Brokers
SoCal Multifamily Sales Pulse -August 8, 2021 - August 14, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
Multifamily Challenge to Eviction Moratorium Fails for Now
Previous non-definitive Supreme Court ruling undercuts a win. Friday the 13th upheld its superstitious reputation for the multifamily industry. A federal judge allowed the newly extended residential eviction moratorium to stand for now because of a complex legal technicality.
When the Biden administration directed the CDC to extend the housing eviction moratorium yet again, it might have seemed that the action had a poor chance of standing up to a legal challenge. And yet it just did on Friday, with the new moratorium.
After all, the Supreme Court had seemed to say in June that the CDC lacked the authority to do so and only left the previous extension through July to stay in place so more of the rental rescue funds could be distributed.
But by July 30, according to Speaker of the House Nancy Pelosi, only $3 billion out of an originally allocated $46.5 billion had made its way into the hands of those who needed it. After Congress failed to extend the moratorium, the Biden administration did so without additional authority for another two months.
Orange County
Orange County multifamily had 16 Closed Sales Last Week. That’s up slightly from the prior week where there were 13 closed sales. 7 of the 16 closed sales were duplexes. 9 of 16 closed sales were in coastal cities. The Average Days on Market was 39 days. There were two closed sales that inflated the Average Days on Market. If we remove those two closed sales the Average Days on Market drop to just 17 days.
There was a closed sale of note of a 6-unit trophy property in Dana Point on Olinda Dr. The property sold for $3,000,000, that’s $500,000 per unit. Looking at the property, it underwent roughly $200,000 worth of exterior and interior renovations in 2018. The unit mix is four 2 bdrm. 2 bath units and two 1 bdrm. 1 bath units. There’s even some room to increase rents for the new owner.
Looking at the listing inventory for Orange County we saw 15 New Listings Last Week. The Total Number of Active Listings went from 166 listings 2 weeks ago to 154 last week. Months of Inventory was unchanged and Active Listings, Dollar Volume was just about the same as the prior week.
List of Closed Sales
Southern California
Long Beach multifamily had just 6 Closed Sales Last Week. Long Beach had the same number of closed sales 2 weeks ago and 4 weeks ago. All the closed sales were 2-4 unit buildings. The majority of the sales occurred in 30 days or less. One property was on the market for 128 days, which increased the Average Days on Market from what would have been 16 days to 35 days.
Long Beach had 9 New Listings Last Week. The listing inventory dropped back down below 100 listings after being at 106 listings in the prior week. Months of Inventory remained at 5 months.
List of Closed Sales