Sacramento Rental Market Update Spring 2014

By
Property Manager with HomePointe Property Management, CRMC 00691121

April 2014

 

As of November 2013 investors in the Sacramento Region now own approximately 80,000 rental units which represents 25% of the market.  Before the recession investors owned 1 in 6 homes, or 17% of the single family market.

 

On the sale side, the inventory of homes for sale has dropped to a supply of only 1.5 months, meaning if no new properties came  on to the market, they would  all  be sold in a month and a half.  A month prior that number was 2 months inventory.

 

Sales prices are slowly rising and this is causing move up buyers to hold back from selling since the low inventory is making it unlikely they will locate a suitable replacement home. 

 

At HomePointe Property Management the vacancy rate has dropped to a historic low of 1.5% as of April 1, 2014.  This is resulting in some rent increases and making it hard for would be renters to locate a home.   

 

 

This is resulting in homeowners and renters staying put more often.  Those that have to sell are getting multiple offers,  especially at the low end.  The buyers are tending to be flippers who can add value and sell quickly to the next homeowner.  For that reason we are seeing the rental inventory shrink for the time being. 

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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Topic:
Real Estate Market Trends
Location:
California Sacramento County
Groups:
Investing in Real Estate
Property Management
Elk Grove Real Estate
Citrus Heights Real Estate
Rental Agents and The Single Family Rental Market
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Rainer
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Randy Shamburger
Movement Mortgage - Greenville, SC
FHA, VA, USDA and Conventional Mortgage Expert

Great market update, thanks for sharing.

Have a Big day,

Randy

Apr 29, 2014 03:51 AM #1
Rainer
11,490
Terry Collins II
HomeSmart ICARE Realty - Sacramento, CA
If it involves real estate, I'm there.

Rent rates are still rising. This market update is still relevant today. Thanks for posting.

Jun 27, 2014 12:15 AM #2
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Robert Machado

CPM MPM - Property Manager and Property Management
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