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2020 1st Quarter Market Study – Greater South Bay Area

2020 1st Quarter Market Study – Greater South Bay Area

350 350 Buckingham Investments

Hello Investors!

We’ve just completed our 1st quarter 2020 Greater South Bay Los Angeles Multi-family Market Study. Income metrics and sale data are included for every sale from Inglewood to Long Beach. Due to the rapidly shifting investment landscape, we are accelerating our research and aim to deliver our market studies as soon as time periods close. To better serve our clients, moving forward we will be shifting to monthly market study delivery vs. the quarterly frequency we’ve been using in recent years.

So what do these numbers mean?

The closed sale data for Q1 2020 doesn’t highlight any clear trajectory resulting from the Coronavirus pandemic yet. Real estate sale data tends to lag other more liquid markets such as stocks, bonds, and mutual funds. Cap rates and GRMs were basically flat from Q4 2019 and in line with what we’ve seen over the last year. Price per square foot was down to $381, but not meaningfully lower than averages we saw in 2019. Sale volume is perhaps one indicator that has begun to adjust.

At 172 sales across this geographic region, this is significantly lower than the usual 1st quarter numbers we’ve seen in recent years, ranging from 213 – 244 sales. Some of this could be explained by the early compleation of our own study, as many sale comps are entered during the week following close. We will continue to add sales as they are registered. Stay tuned for frequent updates and up to the minute data in our own local market.

 

To download a PDF version of the market study, click here: 2020 Q1 South Bay Market Study – Printable