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.