Sacramento Rental Market Update Summer 2013

By
Property Manager with HomePointe Property Management, CRMC 00691121

The Sacramento rental market has remained quite strong this summer. HomePointe's overall vacancy rate stood at 3.8% on June 30, 2013. This rate is slightly over stated since it includes many new accounts that come to us vacant. A 5% vacancy rate is considered even handed. Anything below is a landlord's market. The interesting thing is that normally rents would start to rise soon after the rate dips below 5%. But, in this case there is plenty of replacement inventory coming to market from the institutional investors keeping rents in check.

Sacramento has been experiencing price appreciation in the 20% range recently. That is good news but we have a long way to climb from the lows of the recession. This correction was anticipated. Appreciation should remain, probably at a lower rate, as long as interest rates remain low. Although you still might take a hit from prerecession prices, this is a good time to sell. As stated above, it is not a bad time to hold too. So, unless you have a place to earn a higher return, keeping at least some of your assets in real estate makes sense.

Posted by

Robert A. Machado, CPM, MPM

HomePointe Property Management

Sacramento, Yolo, El Dorado, and Placer Counties

We manage residential and commercial property.

916-429-1205 x 105

rmachado@HomePointe.com

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Robert Machado

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