Duplex Market Is Active… Just Not As Much As it Was Before
Yes the Real State Market is a little slow but for those of you that are thinking of jumping into the Residential Income Property arena and thinking of buying a Sacramento Duplex, I’m happy that you stopped by and took a minute to check this out.
It’s been a while since I’ve posted anything on this site but going forward I’ll be doing more and more here.
Effects of Rent Control and Covid-19
You may or may not be aware that we now have Statewide Rent Control from the passage of AB1482 last year which came into effect January 1, 2020. Last year, the City of Sacramento also passed a Rent Control law that included a Rent Control board.
The result is they’ve capped the annual rent increase to no more than 5% + the local CPI which was 3.3%. They also included some tenant protections such as “just cause eviction” standards.
So we start things off the year with Rent Control and then the “Declaration – State of Emergency”. All evictions were stopped until the end of the declaration.
Not only that, but in Sacramento County the courts aren’t going to start any court proceedings for evictions for at least 60 days after the declaration is lifted.
Some Sales Data to Look at.
In spite of the somewhat negative news above, I did a little research to show you what sales have been like. I don’t see a lot of movement in price changes from List Price to Sales Price and I notice the Gross Rate Multi-plyer has an average of 14 for Active, Pending & Sold/Closed Transactions.
The Sales Data below is from March 15th until May 7th and includes the Zip Codes that I work primarily in which are: 95608, 95610, 95621, 95628, 95630, 95825, 95826, 95841, 95827 .
Total Active for sale now – 25
Avg List Price – $498,238
Avg Days on Market – 34
Avg Gross Rate Multi-plyer -14
Total Closed Sales – 15
Avg List Price – $480,527
Avg Sales Price – $478,027
Avg Gross Rate Multi-plyer 14.2
Avg Days on Market – 19
Avg # of Offers Per Duplex – 4.5
Total Pending Sales 6
Avg List Price – $427,983
Avg Days on Market – 17
Avg Gross Rate Multi-plyer 14
Avg # of Offers Per Duplex – 2
I’ll have another post in the next day or so regarding what to look for in the current market to get the most out of your investment. Some of the inventory out there now is a little high given the amount of rent you’re able to receive if they have current tenants.
In the Mean Time…?
Make it a Great Day
Ed Favinger, Broker, CRS, GRI, SFR 916-203-1260
- Sacramento County “stay at home” order May 1, 2020
- Stockton, Rancho Cordova pass emergency bans on no-fault evictions – Sacramento Bee
- 2019 Millennial Homeownership Report: More Millennials Are Preparing For A Life of Renting – Apartmentlist.com