SoCal Multifamily Sales Pulse - January 30, 2022 - February 5, 2022
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Here's What's Happening In The Market, Here’s What This Means For You
Eviction Legislation Gains Steam
With many eviction bans expiring, officials are weighing whether to extend or adopt new legislation, leading to a showdown between renter and landlord groups. In California, advocacy groups are pushing lawmakers to pass bills that would make it more difficult to evict renters.
The City of Los Angeles extended its eviction moratorium this month until Dec. 31, 2022. The news came shortly after a group of Los Angeles landlords challenging the eviction moratorium sought to bring their challenge all the way to the U.S. Supreme Court.
The Apartment Association of Greater Los Angeles (AAGLA) filed a legal challenge to the moratorium in 2020 but lost their appeal. However, the challenge was supported by several industry and legal groups, including the New Civil Liberties Alliance, the California Apartment Association, and the California Association of Realtors. After appealing its case late last year, the U.S. Supreme Court request a response in the case from the City of Los Angeles in early January, meaning that the legal challenge still has a chance to be heard in the nation’s top court. From the very beginning, the Apartment Association of Greater Los Angeles has stated that it will fight its case ‘out’ until the very end, the group wrote in a release on Jan. 14.
The Pulse of the Market
Absorption Rates were higher in just about every county. The number of new listings also increased just about everywhere which in turn increased the total number of active listings. Sellers are starting to put their property on the market. Perhaps it’s because of the new year or it could also be the threat of increased interest rates and the thought that the market might slow down a bit. They want to take advantage of the last bit of the strong sellers-market we’ve been experiencing for the last few years.
What to Expect:
Inventory levels should continue to increase and sales activity should remain strong for the next few months. If the first anticipated interest rate increase is minimal, potentially a 1/4 % it shouldn’t have much of an effect on the market. It’s the anticipated 1-2 additional interest rate increases later in the year that we might see a little bit more of an effect on sales and activity. Average Cap Rates and Gross Rent Multipliers haven’t changed much over the last few months and that will probably be the same for the next few months.
Orange County
Orange County multifamily sales activity is still strong with 11 Closed Sales Last Week. The Closed Sales - Average Days on Market stayed low at just 25 days. There were 9 of the 11 Closed Sales Last Week that were Transactions That Sold At or Above Asking Price. The monthly Absorption Rate increased from 1.3 months previously to 1.86 months currently.
Good news for Orange County multifamily listing inventory. With 15 New Listings Last Week the Total Number of Active Listings moved up to 106 total listings last week. The prior week this stat was at 91 total listings. So this stat is moving in the right direction- giving buyers more inventory to choose from. Months of Inventory moved from 2 months in the previous month to 3 months currently.
Looking at the monthly stat charts for Orange County. Orange County’s Days To Sell Average dropped to the lowest point in the last 4 years at 31 days. The Total Number of Active Listings was at 157 total listings which is the lowest amount of inventory in the last 4 years. The Total Number of Sales Last Month were the fewest we’ve seen since November of 2021.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Long Beach
Long Beach multifamily sales activity has been slow so far for the first part of 2022. Last week there were just 3 Closed Sales. But all 3 of the Closed Sales Last Week were Transactions that Sold At or Above Asking Price. The Closed Sales - Average Days on Market was just 26 days. The monthly Absorption Rate was up slightly going from 1.4 months previously to 1.84 months currently.
The Long Beach multifamily listing inventory was just slightly better last week than the previous week when this stat went from 60 total listings in the prior week to 61 total listings last week.
Looking at the monthly stat charts for Long Beach we see the Average Days to Sell increased last month to 48 days but its still in the same range it’s been for the last couple of years. The Number of Active Listings was up slightly from 116 listings in the previous month to 119 listings last month. There was a big increase in New Listings last month as it more than doubled the previous month with 42 new listings. The Number of Sales last month came in at 33 total sales. This ends up at a lower point in the range of sales over the 1 ½ years.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Los Angeles County
Los Angeles County multifamily is still doing well with 81 Closed Sales Last Week. The Closed Sales - Average Days on Market was a little inflated at 53 days. There were 41 or just over half of last week’s closed sales that were Transactions That Sold At or Above Asking Price. LA County’s Absorption Rate went from 2.4 months previously to 3.58 months currently.
Los Angeles County multifamily inventory increased significantly with 165 New Listings Last Week. This brings the Months of Inventory up from 9 months previously to 13 months currently. The Total Number of Active Listings is now at 1,253 when it was at 1,205 previously.
Looking at LA County’s monthly stat charts the Days to Sell Average has increased over the last 3 months and is now at 49 days. The Number of New Listings increased significantly and was at 597 new listings last month. But with all the new listings last month the Total Number of Sales last month dropped quite a bit to 343 total sales.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
San Diego County
San Diego County multifamily had another good week for Closed Sales Last Week with 11 closed sales. Almost half or 5 of the Closed Sales Last Week were Transactions That Sold At or Above Asking Price. The Closed Sales - Average Days on Market was low again at just 29 days. San Diego County’s multifamily monthly Absorption Rate increased from 0.6 months previously to 1.09 months currently.
San Diego County’s listing inventory had 17 New Listings Last Week. This increased the Total Number of Active Listings slightly from 67 total listings previously to 69 total listings currently. With the higher Absorption Rate the Months of Inventory increased from 11 months previously to 17 months currently.
Looking at the monthly stat charts for San Diego County we see the Days to Sell Average dropped to 27 days and reflects that inventory is still selling quite fast. The Number of New Listings increased almost double of the previous month to 102 New Listings last month. The Number of Sales last month dropped from 97 sales in the previous month to 63 sales last month.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Riverside County
Riverside County multifamily saw it’s first week of strong sales for 2022 last week with 8 Closed Sales Last Week. 5 of the 8 Closed Sales Last Week were Transactions That Sold At or Above Asking Price. The Closed Sales - Average Days on Market was quick at just 30 days. Riverside County’s monthly Absorption Rate was up significantly from just 1 month previously to 2.77 months currently.
Riverside County’s over listing inventory saw 7 New Listings Last Week but the Total Number of Active Listings is still extremely low with just 55 total listings. This is up from 51 total listings in the previous week. Riverside County has the lowest number of total listings out of all 5 Southern California counties.
Let’s look at the monthly stat charts for Riverside County. The Days to Sell Average stayed about the same as previous months at 44 days. The Number of New Listings last month was at 49 new listings and is an increase from the previous month. This is more in line with the number of monthly new listings we’ve seen over the last couple of years. The monthly Number of Sales last month went from 52 sales in the previous month to just 23 sales last month. Without inventory there are no sales.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
San Bernardino County
San Bernardino County had a fairly slow week of closed sales with 5 Closed Sales Last Week. The Closed Sales - Average Days on Market was just 22 days. The monthly Absorption Rate was up slightly from 1.22 months previously to 1.81 months currently.
San Bernardino’s listing inventory had a strong week with 13 New Listings Last Week. This brings the Total Number of Active Listings to 81 active listings after being at 75 listings in the previous week. The Months of Inventory increased form 7 months previously to 10 months currently. There was just 1 listing moving from active status to Active Under Contract Last Week. Previous activity was reflected in 10 listings moving from Active or Active Under Contract status to Pending status.
Looking at the monthly stat charts for San Bernardino County the Days to Sell Average was at 40 days last month. This is in the typical 30-45 day average we see for most parts of Southern California. The Number of Active Listings dropped further to 430 and is now at a new low over the last 4 years. The Number of New Listings was up slightly, going from 33 new listings in the previous month to 46 new listings last month. The Number of Sales dropped to 43 sales. This is the lowest number of sales since February of last year.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
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