OC Apartment Brokers
SoCal Multifamily Sales Pulse - February 22, 2021 - February 28, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
Southern California Rental Market and Transaction Volume
Despite tepid transaction volumes, property values have oscillated only slightly, as per-unit prices dropped from 4.7% in 2019 to an average of $327,948 in 2020. That relative consistency is also mirrored by acquisition yields for LA multifamily assets, which remained compressed, in the 4.0%-4.5% range for Class A assets in urban areas.
LA rents were down 0.1% on a trailing three-month basis as of December, in line with the national trend. The average overall rate stood at $2,157, well above the $1,462 U.S. figure. Expect LA rents to slightly rebound through 2021, at 0.3%.
Following decades of population growth, LA is facing an uphill battle to retain residents, with lower-cost options such as the Inland Empire and other Sun Belt markets attracting LA dwellers. LA rent woes strongly contrast the neighboring, lower-priced Inland Empire, where rates moved up a strong 7.3% in 2020, while the LA average decreased by 3.0%.
Orange County
Orange County multifamily sales were up last week with 17 Closed Sales. All indications are for smooth sailing for the demand for Orange County multifamily properties. The Total Number of Active Listings dropped slightly to 152 listings while the Active Listings, Dollar Volume has gradually dropped for the last 3 weeks. With 12 new Active Listings Under Contract Last Week activity shows buyer interest in Orange County multifamily isn't letting up any time soon.
List of Closed Sales
Southern California
Long Beach multifamily sales were back at normal levels with 8 Closed Sales Last Week. That's up from just 1 Closed Sale the week prior. Closed Sales - Average Days on Market remained low at just 33 days. After not seeing any All Cash closed sales in the prior 2-3 weeks there were 3 Closed Sales purchased using All Cash last week. Looks like investor's interest in Long Beach apartments is still strong. The Total Number of Active Listings was unchanged with 124 Active Listings.
List of Closed Sales