We’ve already discussed December’s market for residential properties throughout Sacramento. Now we turn our attention to residential income properties. These are mostly — though not exclusively — multi-unit properties, from duplexes on up through apartment buildings with any number of units.

December saw 68 residential income properties change hands in Sacramento County through the MLS, down from 117 in December of 2004. The average property listed for $498,747 and sold for 98.1% of list at $489,357. Appreciation based on average sale price from December to December was 6.2%. (Average cost per square foot is not readily available on residential income properties).

What we expect from our earlier review of residential income properties is more softness in the market than in residential properties, and we’re not disappointed.

Inventory for residential properties is at 5 months, while for residential income properties, the number is seven months. And while the expired to sold ratio is high for residences at 86.9%, it is a whopping 127.9% for residential income properties. (Or to put it another way, if you create a pie chart, the expired slice is 56% of the total, while the sold slice is 44%).

As the market slows slightly, this is really no surprise. We expect that investors who were hoping for appreciation are likely to be dumping more properties on the market as the market cools, but at the same time finding fewer buyers as the timid begin to avoid the game altogether.

blog comments powered by Disqus