According to New York-based real estate research firm, Reis Inc., U.S. apartment rents fell in the first quarter and the vacancy rate rose to a five-year high as job losses and falling incomes reduced demand.
Vacancies climbed to 7.2 percent from 6 percent a year earlier and 6.6 percent in the fourth quarter. Vacancies were at the same level as the first quarter of 2004, matching the highest since Reis began conducting its survey in 1999.
The U.S. has lost 5.1 million jobs since the recession began in December 2007. These job losses and falling wages are shrinking the pool of potential renters, bucking expectations that apartments would benefit from slumping home sales.
According to the report, rents paid by tenants fell 1.1 percent from the previous quarter to $984 on average. They were up 0.1 percent from a year earlier, Reis said. And occupied space fell by a net 31,878 square feet, the largest one-quarter drop since the first three months of 2002, excluding apartments lost to condominium conversions. Its survey measured 9.56 million apartments, including 22,833 units completed last quarter.
Reis expects more than 90,000 new units to come to market this year, comparable to the annual average from 2006 to 2008, when the economy was stronger. This suggests rents could fall further as apartment owners offer price breaks.
This does not bode well for the Sacramento area. Sacramento is a middle of the road economy and generally reflects the trends of the national rental market. The bottom line is job loss and population trends.
The lead article in today's Wall Street Journal says that the nation's largest mortgage companies are stepping up forclosures. Now that the new administration has announced it's rescue plan, the moritorium on foreclosures has been lifted.
It looks like the majority of bad loans will not be restructured and will become bank owned. Notices of trustees sales are up 80% in March in California. The delay that occured while waiting for the new Obama plan has only delayed the inevitable.
If you are looking to buy, it may be time to wait and see as values could swing down if supply swings up. Stay tuned.
We get asked this question all the time. I think we get asked it because many property management companies completely close down for the weekend. Many smaller companies struggle with this issue since property management work never truly takes a day or night off. Can you imagine for a moment owning a company with no human backups, and having to be on call 24/7? Easy to talk about your customer service, but much harder to deliver, week(end) after week(end), night after night, holiday after holiday. One of the reasons I expanded my company is that to truly deliver adequate customer service in this business, the company has to be large enough to share the responsibility.
Here is how HomePointe Property Management delivers superior service over the competition.
1. We have more than 10 people in our company that share our 24/7 duties. Each person takes a week in turn taking after hours emergency calls. That way, no one person is on call all the time. Burn out is reduced and the person on call knows that the late night calls will not last forever. Our clients get a person late at night and weekends that knows who to call to solve a problem. This Easter Weekend our on call agent solved a plumbing backup which included getting a plumber to the property, getting a bid to replace the collapsed sewer line, and calling the owner to apprise them of the situation. In the end, the tenant got their sewer line working and the owner got a great price from one of our many vendors that serve our clients.
2. Our property managers and owners meet with many prospective and current clients after hours and on weekends. This weekend I met a prospective client in Land Park with one of our property managers to give him a complete picture of what we could do for his Land Park house. He wants to rent it but needed some advice on what to do. We suggested painting the exterior trim and base and paint for the interior. The hardwood floors already looked great so nothing to spend there. The point is that the owner was only available on the weekend and we happily made the appointment.
3. On Saturday our company showed 54 vacant houses for rent to prospective renters. On Sunday we showed 17 houses for rent. The showings were all printed in the Saturday Real Estate Section of the Sacramento Bee and posted on our website 4 days in advance. We do not want to miss a prospect that might not have internet access so we use the Sacramento Bee, signage, and many websites to attract potential renters. The point here is that four different people from HomePointe were out showing our vacancies over the weekend while many other companies were either waiting for their phone to ring or just taking messages that they will return Monday morning.
If you are needing a place to rent and need to look during business hours or on the weekend, or if you rent from us and need service, or if you need to make a weekend appointment to have us view your rental, give us a call or email us.
Property Management and Maintenance 916-429-1205
Rentals 916-429-1302
www.HomePointe.com
Houses for rent in Roseville are holding their own. The average price for a three bedroom house for rent in Roseville, CA is $1448.00 with a high of $2100 and a low rent of $1195.00. Roseville has many diverse neighborhoods, some old and some new.
The average four bedroom rental house in Roseville, CA is renting for $1908.00 with a high of $2950 and a low of $1295.00. As you can see, there are many choices and price ranges.
We were able to locate 41 houses for rent that have 3 and 4 bedrooms in Roseville.
HomePointe has one of its 3 offices located in Roseville at 1220 Melody Lane. If you need help locating a tenant and managing your home give us a call.
The good news is that Sacramento is no longer one of worst 25 real estate markets in the country. For a time Sacramento ranked among the worst 5 markets. As you can see below nine other California cities rank worse than Sacramento. I have noted that REO listings at the bottom end are attracting multiple offers and prices are firming up. There may well be more foreclosures to come, but there are also plenty of buyers to snap them up when they return to market.
This information comes from www.housingredictor.com.
| Rank | Real Estate Market | 2009 Forecast |
| 1. | Detroit, MI | - 24.3% |
| 2. | Riverside, CA | - 23.9% |
| 3. | Stockton, CA | - 23.8% |
| 4. | Los Angeles, CA | - 21.7% |
| 5. | Miami , FL | - 21.4% |
| 6. | Anaheim, CA | - 21.1% |
| 7. | Las Vegas , NV | - 19.8% |
| 8. | Fresno, CA | - 19.7% |
| 9. | Phoenix, AZ | - 19.6% |
| 10. | San Diego, CA | - 19.5% |
| 11. | Manhattan, NY | - 19.4% |
| 12. | San Jose, CA | - 19.2% |
| 13. | Oakland, CA | - 18.2% |
| 14. | Reno, NV | - 17.9% |
| 15. | San Francisco, CA | - 17.6% |
| 16. | Bakersfield, CA | - 17.2% |
| 17. | Lansing, MI | - 16.5% |
| 18. | Grand Rapids, MI | - 15.2% |
| 19. | Honolulu, HI | - 15.1% |
| 20. | Boston, MA | - 15.1% |
| 21. | Scottsdale, AZ | - 14.9% |
| 22. | Richmond, VA | - 14.8% |
| 23. | Long Island, NY | - 14.8% |
| 24. | Bend, OR | - 14.6% |
| 25. | Seattle, WA | - 14.2% |
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Property Management Rentals and Maintenance in Sacramento, Yolo, Placer, and El Dorado Counties from offices located in Sacramento, Roseville, and Orangevale, CA We manage residential and commercial.
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