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Here's What's Happening In The Market, Here’s What This Means For You
Santa Ana Rent Control Approved
Despite California’s pre-existing rent control measures which cap rent increases statewide at 5% annually, some metro areas enact more restrictive local ordinances and additional protections than the state.
Recently, Santa Ana became the newest metro in California to adopt its own rent control policies and the first in Orange County to do so. The changes took effect on November 19, 2021.
The city council voted 4-to-3 to approve measures intended to benefit the majority-renter community of Santa Ana, including:
- Capping rents at 3% annually or 80% of inflation, whichever is less, for buildings built before 1995 and for mobile home parks established before 1990;
- Enacting just cause evictions which limit the circumstances in which a landlord may evict a tenant who has lived in the property for at least 30 days;
- Allocating pandemic relief money towards creating an “eviction defense fund” and hiring a consultant until the city creates a new rent control board and a rent registry for apartments; and
- Directing city staff to study how the intended measures will be implemented.
Orange County
Orange County multifamily had 11 Closed Sales Last Week. That’s the same number of closed sales as the week before Thanksgiving so its looking like Orange County multifamily sales activity isn’t slowing down even for the holidays. The Closed Sales Average Days on Market was elevated at 62 days. This stat is typically around 30 days plus or minus. There were 9 of the 11 Closed Sales Last Week that were Transactions That Sold At or Above Asking Price. Even though most transactions sold over the asking price there was just 1 All Cash Transaction Last Week. The monthly Absorption Rate moved up to 2.12 months from 1.85 months in the previous month.
The Orange County SALE OF THE WEEK was a 4 plex on Glenoaks Ave. in Anaheim. The property was listed at $1,425,000 and sold for $1,380,000 in 57 days. The major cross streets are Euclid St. and La Palma Ave. The building was built in 1960. The property had a new roof and was in the process of being painted. The unit mix was one 3 bedroom 2 bath and three 2 bedroom 1 bath units. Each unit has its own laundry hookups and one single-car enclosed garage. The property sold at $336 per sq. ft. The average price per sq. ft. for Anaheim is $360. The rents were on the low side. The property sold at 19.1 x gross on existing rents.
Orange County listing inventory had 9 New Listings Last Week. This is the same number of new listings as the prior week. The Total Number of Active Listings moved up slightly from 118 total listings in the prior week to 120 total listings last week.
Looking at the monthly chart for the Number of Active Listings the overall trend has been moving downward for the last 4 months. The Number of Monthly Sales fell to 56 total sales, which matches the low point for this year that occurred in February. The Months of Inventory remained at 3 months.
List of Closed Sales
Live MLS Link PDF Link SALE OF THE WEEK
Southern California
Long Beach multifamily had 6 Closed Sales Last Week. This is up from 3 closed sales in the prior week. The Closed Sales - Average Days on Market was near the top of the average range at 43 days. Just 1 of the 6 Closed Sales Last Week were Transactions That Sold At or Above Asking Price. There were 2 All Cash Transactions Last Week. The Long Beach monthly Absorption Rate went from 2.15 months previously to 2.36 months currently.
The Long Beach SALE OF THE WEEK was a 4 plex on Bermuda St. The property was listed at $1,399,000 and sold for $1,350,000 in 79 days. The property was built in 1908. It’s located just a ½ mile from the beach. The major cross streets are 4th St. and Cherry Ave. The units consisted of a 2 bedroom 1 bath Craftsman-style house in front and three 1 bedroom 1 bath units behind. The rents were low. There was approx. 50% upside in the existing rents. The property sold at $498 per sq. ft. and $337,500 per unit. The total building sq. ft. was 2,708 sq. ft. The Long Beach price per sq. ft. is $527.
Looking at the Long Beach listing inventory. There were 6 New Listings Last Week. The Total Number of Active Listings dropped down to just 71 total active listings. The Months of Inventory increased from 3 months previously to 4 months currently.
Looking at the monthly chart activity for the Days to Sell Average, it spiked to 56 days last month. Looking at the Number of Active Listings we can see the total number of listings has been dropping steadily for the last 4 months. The total Number of New Listings dropped to its lowest point since December of 2019. The total Number of Monthly Sales also declined to just 30 total sales last month.
List of Closed Sales
Live MLS Link PDF Link SALE OF THE WEEK