OC Apartment Brokers
SoCal Multifamily Sales Pulse - February 1, 2021 - February 7, 2021
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
The good news is Commercial Mortgage-Backed Securities (CMBS) delinquencies are down for the third straight month. Hopefully it's a sign that the worst of the COVID market is behind us.
One common narrative about the changing migration patterns of the last year is that fear of the coronavirus and new remote work models led people to move to greener vistas. However, a new survey from the Pew Research Center shows that financial stress drove most decisions to relocate, especially as the pandemic wore on.
In November, a third of respondents in the Pew survey said that financial reasons motivated their decision to move. Among this group, 17% of respondents cited job loss as the financial pain point, while 15% said that the financial pain point was something other than job loss. This is a significant increase from June when only 18% of respondents cited financial pressures as the reason for their move.
The trend was even more notable among those who moved with another adult. When isolating for this category, 36% of people who moved with another person cited financial reasons as the main motivator to move. This suggests that families faced more significant affordability challenges during the pandemic than single adults.
A high risk of contracting the coronavirus and moving to be closer to a family member also topped the list as reasons why some people decided to move, 14% and 17% respectively. College students moving due to campus closures was also among the most common reasons for migration to a new market, according to the survey.
Orange County
Orange County multifamily sales were back to normal last week with 12 Closed Sales, with almost half of the Closed Sales closing At or Above the Asking Price. The Months of Inventory dropped from 5 months to 4 months as the Total Number of Active Listings went from 175 Active Listings in the prior week to 163 Total Number of Active Listings last week. There were 15 Active Listings Under Contract last week. This is an increase of almost double from prior weeks which shows demand is holding steady or increasing.
Southern California
In Long Beach, the multifamily sales totaled 8 Closed Sales. Average Days on the Market increased from 25 days in the prior week to 52 days last week while Months of Inventory increased from 5 months to 6 months. Perhaps a little bit of a slowdown in demand for Long Beach? There were only 6 New Listings Last Week in Long Beach but the Total Number of Active Listings remained pretty consistent at 123 total Active Listings. Check the charts above to see where the trends are for Days to Sell Average, Number of Active Listings and the Number of New Listings on a monthly basis.
