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Sacramento Duplex Market Update – Post Covid-19

Sacramento Duplexes in Good Condition are Selling – If Priced Right..!

 

That’s always the story isn’t it really in just about any market ?   Well maintained properties priced accordingly to the market conditions will always sell, many time with multiple offers.

Since the last update regarding sales data,  I did some follow up research to show you what sales have been like since the last post I submitted over a month ago.   Remember this is the sales data for the following zip codes: 95608, 95610, 95621, 95628, 95630, 95825, 95826, 95841, 95827.

The Sales Data from the May 12 post entry disclosed a List Price to Sales Price Ratio of 99.5%.  The information below that I’ll share shows the market still pretty warm and some properties with more than a couple of competing offers.

My Duplex sales Summary effective June 15, 2020 shows there’s a little bit of a price dip on some of the Duplexes for sale because as you’ll see the List Price to Sales Price Ratio is now at 97.7%.  This information is from closings occurring after May 7th up to June 15th.

You will notice however the Gross Rate Multi-plyer (GRM) has an average now of 12.81 for Sold/Closed Duplexes which is down from the 14 GRM for Active, Pending & Sold/Closed Transactions in the Summary from a month ago.

With fewer properties on the market we’ll see what happens in the next few weeks but I think you’re going to see an uptick in sales because we’ve got more pending now with the Average Days On Market down or the same for Pending and Closed Sales.

The Duplexes that are priced over the market or in poor condition you’ll see have a much higher Days On Market Average.

Rental Market is pretty good now too.   Units in good condition are renting up quickly at top dollar in spite of the Covid-19 situation here.

Bottom Line…?

If you are looking to purchase a Sacramento Duplex, give me a call at 916.203.1260.  Texts work too or you can send an email to me at Ed@EdFavinger.com.   We not only can help you in your purchase, but we also provide “2nd to none” Property Management as well.

If you are thinking of Selling a Duplex, I want to talk with you.   I can show you how to get the most out of your investment.

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker, CRS, GRI, SFR

 

Related Articles

 

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Multi-Family Residential a Favorite for Investors

Late Cycle Real Estate Investing Strong

I thought I’d share an article from Bisnow.com.   You can subscribe I think for free and they will send you information to your inbox with Real Estate and other business news.

The reason I thought I’d share this is because many people I talk to,  including other Real Estate professionals, have the feeling the Real Estate Market is slowing down.Late cycle investing Bulls and Bears

However, the BisNow article points out the trends just before the great recession and the trends of today, especially when it comes to Multi-Family Residential,  are much different.

I share the optimism of the writer of the article because it applies to all residential income properties in this area at least, in my opinion.  Those types of properties include Single Family Homes, Duplexes, Four-Pelxes and Apartments.

They just can’t build enough units but they are trying.

Click here for the BisNow article.

Click here for a local Sacramento Business Journal Article regarding new construction of Apartments in the Region.

So if you’re on the fence about Investing in a Duplex, a Four-Plex, a Single Family Rental or an Apartment complex, please contact me today at 916.203.1260 or drop a note my way via email at: favinger@rwnetwork.com

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker

 

Rents Are Up In a Good Market and are Up in Down Market..!

You’d think the opposite would be true but it’s not.

It’s amazing  when you think about it, but after watching the video that I’m going to post below, I realized these guys are right.

When the Real Estate Sales market is “hot” rents go up.   But, even in a down turn, the rent rates still go up.

Messrs Brian Stevens and Frank Garay are a couple of loan guys that do a lot of video updates about the Real Estate Loan market, Real Estate Sales and about some of the “inside baseball” stuff for those of us in the business.

Our Property Management company is now leasing up Units in Apartment complexes, Duplexes and Single Family Homes for record high rental amounts and many times with “multiple applications”.

So after taking a peek at their video that I got today,  I thought I’d share it with you because their conclusion about rents going up in good and bad markets is something I had not thought of.

You can skip the beginning of the video if you want to and go to the 3.43 minute mark to see their presentation that includes an interesting graph to make their point.

If you are thinking of Investing in a Residential Rental property such as a Duplex or a Four-Plex, a Small Apartment complex or even a Single Family home….?

Then, call me at 916-203-1260 or drop a note my way at favinger@rwnetwork.com.

I’ll bring you up to speed on our local market with comparable sales information and also what you can expect to earn in rents.

In the Mean time…?

Make it a Great Day…

Ed Favinger, Broker, CRS, GRI, SFR, CDPE        favinger@rwnetwork.com

 

Why Suburban Housing is Making a Comeback with Millennials & Other Generations

Suburban Folsom Real Estate is Sure to Take Advantage of This Trend.

If you look at the graphic below provided by the California Association of Realtors, it shows which generations prefer which kind of housing and lifestyle.   If you haven’t been to Folsom, California I think we are a hit with about all the demographics today.

I’ve lived in Folsom since October 1989 and watched all the changes first hand.  Folsom Real Estate includes a lot to offer that is shown in that graphic below.

If you’re looking for homes with large lots, we’ve got them.   You want a condo with no yard..?   We got them too.  If a home with a small yard close to lots of services is what you like, we got that.

Check out the link to the large new development in Folsom south of Highway 50 called Folsom Ranch which will have a lot of the elements shown in the graphic below.

Folsom Ranch Overview

 

Home Preferences for the generations

 

 

Now take a look at what the National Associaton of Realtors has to say about 7 Zip Codes That Exemplify Suburban Comeback.

If you are thinking of Buying a home or investment in Folsom or the surrounding areas, please call me at 916-203-1260 or drop me a note at favinger@rwnetwork.com

In the Mean Time…?

Make it a Great Day…!

Landlords Market in Sacramento Area – Bad News If You Are a Renter…!

Rents Are Up “Big Time”…So Start Your Search Early ..!

 

If you’re a Landlord/Investor in the Sacramento Area and recently tried to lease or rent up an apartment you were probably shocked at the responses.  Old news to us in the Residential Investment and Property Management business.rental search

Rents are up so much in the Sacramento Area and supply so low,  if you’re a person looking to rent, you’d better start your search very early and have any credit issues resolved first, because it is a “landlords market”.

You may not have heard but Landlords and Property Managers are experiencing “multiple” applications for just about every unit that comes up.

It doesn’t matter what kind of property we’re talking about either.   Our Property Management company has so many people seeking a Home/Apartment to rent that we have set  up a  “showing/viewing” schedule each week posted on the website instead of making specific appointment times when prospective tenants call.

On most occasions now days we have several prospective tenants come to those showings and many of them will bring a completed application as well.

This kind of Landlord’s market will make most investors smile.   So if you are thinking of getting into the Residential Investment market, this is a great time.   No one seems to know when the rise in Rental Rates will stop because there’s a lack of supply.

With an improving economy with lots of jobs and a lack of supply,  even paying more for the investment won’t necessarily be a bad thing.

Call me at 916-203-1260 or drop a note to favinger@rwnetwork.com and we’ll see if we can’t place you into an investment that works for you.

Now… If you are a prospective tenant with good income…?  May I suggest you think about buying because it will be better for you in the long term.    Call me and we’ll see if we can’t get you “pre-qualified” with the various loan programs that are available to you.

In the mean time…?

Make it a Great Day..!

Ed Favinger, Broker, CRS, GRI, SFR, CDPE     favinger@rwnetwork.com   916-203-1260

 

Folsom or El Dorado Hills Home Prices Are a Bargain…!

San Jose’s Median Home Price – $800,000 range – Folsom/El Dorado Hills = More Home for Much Less.

Prior to moving to  Folsom in 1989, my family sold an 1800 sq foot  home in San Jose for $300,000 and thought we’d robbed a bank in doing it.Home Prices in San Jose - Compare with Folsom & El Dorado Hills

Our new Folsom home was new in the new neighborhood of Lexington Hills.

A brand new 2500 sq.ft. home that included a pool and spa for under $220,000.

It’s plain to see  you can buy much more home for a lot less money in Folsom or El Dorado Hills then you can in San Jose or anywhere else in the Bay Area.

Today’s market is the same and I think we’re about to experience another wave of Bay Area buyers coming to our area to scoop up some homes here that would make a “Central American Dictator” proud.

Check out this article I got from the Silicon Valley Business Journal to see what I’m talking about.

If you live now in San Jose or anywhere else in the Bay Area, Click Here for a list of homes in Folsom and Click Here for a list of homes in El Dorado Hills and let me know what you think.

Some fun facts about our area;   We’ve got awesome weather.  We’re close to the Bay Area and Lake Tahoe.   If you like wine tasting, you don’t have to drive to Napa.  Just check out next door Amador County.   If you have school aged children, trust me, moving to this area was the best thing I ever did for my family because we’ve got great schools with lots of activities and superior academics.

If you are from San Jose or any where else in the Bay Area and thinking of relocating, call me and let me give you what I call the “Chamber of Commerce” tour of the area.   I can help you find the home of your dreams, or… if you’re an investor we also specialize in the Sales and Management of Single Family homes, Duplexes, Four-Plexes and small to medium sized Apartment Complexes.

In the mean time…?

Make it a Great Day…!

Ed Favinger, Broker, CRS, GRI, SFR, CDPE   916-203-1260    favinger@rwnetwork.com

 

Sacramento Area is the Best Area Residential Real Estate Investors

In An Improving Economy – Not Enough Homes – Creates Higher Prices & Rents.

If you’re a San Francisco Bay Area home owner or investor and looking for a place to move to or invest in, you can’t really beat the Sacramento Area.

tamis cambridge

Two Homes On One Lot in Cameron Park Managed by Haven Properties

Prices and rents have gone up but are still a bargain when you compare them with Santa Clara, Contra Costa, San Mateo, Alameda and San Francisco Counties.

Just take a peek at what you can buy here in Folsom and compare that where you live in the Bay Area.

If you’re an investor, you can still get a decent Duplex or Four-plex for under $400,000 and have a “cash flow” which is unheard of in the Bay Area now.    Foreign Investors are just parking their money in the Bay Area in hopes of higher appreciation down the line, but they don’t have a decent cash flow return in the mean time.

I thought I’d pass on this article from the East Bay Times.    Maybe it’s time to Move here and/or Invest here…?

And Finally…. The two things we don’t have as bad as the Bay Area….? 1. No Rent Control… 2 And Bay Area “traffic”.

In the mean time…?

Make it a Great Day…

Ed Favinger, Broker, CRS, GRI, SFR, CDPE   916-203-1260  favinger@rwnetwork.com

 

Is Value Added When You Install a Pool or a Solar System…?

It All Depends… of course…!

If you have pondered adding a Solar electric system to your home or a pool, then take a minute and read here.

There was an interesting discussion started today on a Facebook Real Estate Group page that I and other Brokers/Agents belong to  regarding the costs/savings of installing a solar system.   Ryan Lundquist a local appraiser and Real Estate Blogger pointed out some interesting numbers.

I’ve cut and pasted his question to the group here:

A solar salesman told an owner the system would add $6,000 in value for each kilowatt of power. Since this system was 6kw, it would supposedly add 36K. Keep in mind this home is located in a 350K neighborhood. On a practical level would we expect to see a home without solar sell for $350K and one with solar sell for $386K? Here’s the thing. Buyers don’t pay the full cost of a solar system in the resale market. Moreover, even if it did add $36,000 in value, borrowing that much money for 30 years would cost a Borrower $170 per month (and $61,000 over 30 years). Of course the system is probably only going to last for 20 years though. At the least the first question a buyer should ask if there is at least $170 savings every single month. Thoughts?

After reading the above, I asked him “if a pool costs $50,000 to install, I know you’re not going to get that back,  but is there some kind of a rule of thumb you look at..?”

He had a very interesting response that hadn’t occurred to me, even though I’ve been selling real estate over 30 years.

Ryan Lundquist Good question Ed.

It would be nice if there was one adjustment that fit every situation, but the truth is that 50K pool in Granite Bay is probably worth way more there than it would be in a 200K neighborhood because the market expects a pool like that in the neighborhood.  Thus the adjustment is about where the pool is located and what buyers expect and pay for in that area.

We’d like to think there is one adjustment to apply everywhere, but that just wouldn’t work. On a practical level, we can consider the cost because it probably says something about the quality, but at the end of the day let’s start comparing homes with and without pools to see if we can come up with a reasonable and supported adjustment (or a reasonable range of what buyers having been willing to pay).

It’s okay if there are no recent sales too because we can look through years worth of data as well as competitive neighborhoods. I actually wrote a post about the percentage of pool sales in different areas of town.

When the market expects a pool, it can be a big hit to value when there is not one, but when the market doesn’t expect a pool, it might not be that big of a deal for value to have one.  http://sacramentoappraisalblog.com/…/what-does-the…/

What do you think….?   My thoughts are that what ever you decide to do as an improvement I don’t think you should expect to get it all back.  I would rather look at the test of whether or not the improvement I added would make my life a little more enjoyable when I’m home.

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker, CRS, GRI, SFR, CDPE     916-203-1260 favinger@rwnetwork.com

 

The New Water Conservation Rules – Folsom

Pretty Much The Same…With Some Changes

 

shutterstock - california drought

 

I thought I’d pass on the City of F0lsom’s Website posting regarding the new water use reduction rules because of the ongoing drought.

 

CLICK HERE FOR THE UPDATE

 

Have you started saving water yet…?  Have you put the bucket in the shower to save for your plants…?

 

They also have a great App that you can track your water usage in Folsom called Dropcountr.

 

Take a peek at that app and let me know what you think.

 

In the Mean Time..?

 

Make it a Great Day…!

 

Ed Favinger, Broker, CRS, GRI, SFR, CDPE      916-203-1260     favinger@rwnetwork.com

 

 

 

 

Is This a Good Sign That Real Estate is Back in Sacramento….?

I think so… especially when you see this kind of news.

 

HOME DEPOT SET TO HIRE 1500 IN THE SACRAMENTO REGION

You have to agree if these large big box corporations like Home Depot are on the hiring binge, they must have a lot of confidence they are going to need this many people to accommodate their customers.

I noticed here in Folsom, that you can go to the local Home Depot, Lowes and Orchard Supply and you’re going to find a lot of people in there doing some shopping.

This is the spillover effect of a good real estate market for Home Buyers and Sellers along with residential investors.

What do you think…?

 

In the Mean Time…?

Make it a Great Day…!

 

Ed Favinger, Broker, CRS, GRI, SFR, CDPE       916-203-1260     favinger@rwnetwork.com