Market Trends – Sacramento Property Improvement Trends – January 2012
There has been a trend in property improvements in Sacramento early in the month of January. In talking to contractors, suppliers, and phone queries to our office, there is a surge in demand for construction trade work to investment properties throughout the Sacramento area. This trend seems to 
be one that will continue into the New Year.
The trend in property repairs and improvements to investments properties seems to match the sales of lower priced homes. Many of the calls that we have gotten, were the result of property bought toward the end of last year. Investors may have been pushing to get properties before the end of the tax year, I’m not sure but there seem to be more calls than usual for this time of year. Regardless, the investor market is growing for us in the trades.
Many of the calls that we have gotten are from the small investors. Investors with a limited number of properties are taking advantage of the lower 
interest rates and large inventory of homes, condos, and duplexes. I looked at two homes and a duplex today alone; each was vacant and recently acquired. Maybe this is a good sign of properties beginning to move a bit.
In conversations with others in the trade, the work that is being done is in preparation of renting the property. There are termite reports being satisfied, property inspection items corrected and general cosmetic repairs. Owners are taking care of the items that were found in the reports right away, while doing all the work in preparing the unit for rent. Some of the investors have taken on portions of the projects themselves.
I think that this trend will continue into the future as more and more properties in the lower price range become available. As long as the return on investment in this price range remains high, this trend will continue into the New Year.
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