New Listing - 3136 Belden Street, Sacramento, CA 95815

The most adorable 1 bedroom, 1 bathroom, 904sf private cottage in Del Paso Heights awaits a new owner! You will absolutely love this well-maintained gem. Serene, secluded setting on a corner lot with side alley access. Enjoy coffee or a beer on the huge covered front porch! Inside find huge living room and fireplace, remodeled kitchen with granite counters, cute breakfast nook with built-in seating, updated bathroom, indoor laundry room. Huge lot with manicured landscape, sprinklers and drip lines, and lots of sunny space to garden or play! Apple, apricot, and orange trees along with grape vines, with plenty more space makes the perfect spot for your small urban farm! Freshly painted exterior. Detached oversized garage offers lots of storage. RV access, complete with water, sewer, and power hookups. Pest clearance completed August 2019. Located in close proximity to transit, parks, shopping and convenient freeway access. Don't wait! Offered at $225,000. For more photos and information please visit 3136 Belden Street, Sacramento, CA 95815.

City of Sacramento passed a rent control ordinance -- here are the basics...

The City of Sacramento passed a new rent control ordinance last month that will be rolling out very soon. I think there may be confusion among local landlords and tenants alike as this is implemented. This ONLY applies within the city limits of Sacramento, which is a very specific area...there are areas within the unincorporated county of Sacramento where the ordinance will not apply, and there are many residents of those areas who do not realize the difference between city and county jurisdiction. Here is a map of the affected areas:

I think confusion will be highest in areas with Sacramento addresses that are outside of the city limits. For example parts of town such as the Arden / Arcade areas, some parts of Natomas, areas near the Oak Park neighborhood, Rosemont, South Sacramento, Foothill Farms, etc all have Sacramento addresses but are actually located in the unincorporated county though are adjacent to the city limits. Those areas are not affected by this rent control ordinance.

If you have trouble sleeping, you can read the full text of the adopted ordinance here. Here are the highlights of the new ordinance that will be in effect in the coming week:

• Allowable annual rent increase is set at 6% + CPI (inflation adjustment), hard cap not to exceed 10%
• Base rent is set at what the landlord charged as of July 1, 2019
• Only 1 rent increase allowed every 12 months
• Single family homes are exempt
• All units built after February 1, 1995 are exempt
• Just cause for eviction. After 1 year of occupancy, owners may only terminate tenancy for cause (like failure to pay rent or illegal activity), OR may only terminate tenancy with 120-day notice for the following reasons:
• To make substantial repairs (must offer tenant first right to return) 
• Landlord or immediate family moves into the unit 
• Landlord withdraws all of the units in the building from the rental market for at least one year.

The ordinance will sunset on December 31, 2024 unless extended.

For added fun, there is a statewide rent cap bill, AB1482, making its way through the legislature right now. It will be interesting to see if there is the political will to make rent control a statewide policy. We shall know on that one in the next month.

If you are thinking about selling a rental or investment property in the city limits of Sacramento that falls within the jurisdiction of these rent control ordinances, please reach out to me right away so we can strategize how to sell the property in compliance with the ordinance.

New Listing - 6931-6933 Trovita Way, Citrus Heights, CA 95610

Great duplex multi-family income property opportunity awaits you in Citrus Heights! Convenient, high-demand location. The left side unit is 3 bedrooms/2 bathrooms with a 2-car garage, and the right side unit is 2 bedrooms/2 bathrooms with a 1-car garage. These units are a blank canvas for your updating after decades-long tenants. Spacious units flow nicely with lots of living space, open floorplans, big bedrooms, en-suite master bedrooms, ample storage, private/fenced backyards with lots of sunny space to garden or play. Both units have central heat & air and composition roof. Located near shopping, public transportation, parks, and schools. Don't wait! MLS# 19058660. Offered at $405,000. For more photos and information please visit 6931-6933 Trovita Way, Citrus Heights, CA 95610.

Backyard chicken rules within the City of Sacramento

I was asked this week if chickens are allowed at residential properties within the City of Sacramento. I have had several clients who live within the city limits who have had chickens. Chickens can be great for laying fresh eggs or as family pets. Thanks to an ordinance that was passed in 2011, the short answer is -- YES -- chickens are allowed, but of course that comes with plenty of rules to follow. For example:

• Maximum of 3 chickens per parcel
• No roosters allowed
• No slaughtering permitted
• Chickens must be in a coop at all times
• Chickens must have adequate food, water, and ventilation

There are also several requirements relative to the size and location of the chicken coop. And of course the city also requires a permit and fees.

To read the full list of rules per the City of Sacramento website, click here. And you should inquire directly with the city with any questions.

New Listing - 2175 35th Street, Sacramento, CA 95817

Stunning 3 bedroom, 2 bathroom, 1,903sf Med Center area Tudor style home! You will love the classic features and modern amenities in this painstakingly maintained property. Enter through the arched doorway into the formal living room, elegant fireplace with gas insert, inlaid wood floors, built-ins & tray ceilings. Large formal dining room. Updated kitchen features white cabinets, granite counters, tile backsplash, lots of storage, & breakfast counter. Family room off kitchen leads to serene and quiet backyard space with a great deck for entertaining and lots of sunny space to garden or play! Downstairs bedroom and full bathroom. Upstairs find 2 large bedrooms & huge remodeled master bathroom with dual sinks & huge closet! Central heating & air with separate remote-controlled units exclusively for upstairs. Freshly painted interior. Dual pane windows. Quarter basement. Detached garage with secure alley access. Located close to public transportation, UC Davis Med Center, shopping, restaurants, easy access to midtown and downtown, & more! Don't wait! MLS# 19046138. Offered at $599,900. For more photos and information please visit 2175 35th Street, Sacramento, CA 95817.

New Listing - 80 Riverknoll Place, Carmichael CA 95608

Welcome to the private gated Riverwood community in Carmichael. You will love how this 2 bedroom, 2.5 bathroom, approx 2,150sf home is nestled among an amazing tree canopy and lush manicured landscape. Come inside through the formal entry, and you will discover a spacious floorplan featuring a large living room with vaulted ceilings and a cozy fireplace. The living room and adjacent formal dining room look through a sunlit bank of windows to an expansive deck that truly integrate interior living space with the serene exterior. The updated kitchen offers something for everyone with gorgeous views of the outside, eat-in nook, lots of counter prep room and lots of cabinet space. The lower level features dual master suites, each with an ensuite bathroom and an abundance of closet space. All this with ample community amenities such as a pool and spa, and access to the American River and parkway. Close to parks, shopping, and more but in a secluded enclave far from the bustle of everyday life. Don't wait! Offered at $499,900. MLS# 19056380. For more photos and information, please visit 80 Riverknoll Place, Carmichael, CA 95608.

New Listing - 11100 Morgan River Court, Rancho Cordova, CA 95670

Location, location, location! A really special 3 bedroom, 2 bathroom, 1579sf Sunriver Rancho Cordova home is ready for a new owner. You will love the open spacious layout, separate living and family rooms, vaulted ceilings, updated kitchen with tile counters overlooks the backyard. Large bedrooms with lots of closet space. Laminate flooring. Central heating and air. Newer water heater. Section 1&2 pest clearance. Attached 2-car garage with brand new metal garage door. HUGE private quarter acre+ lot has lots of sunny space to garden or play. An outdoor oasis awaits with a built-in pool and spa. No rear neighbors! Backs to the Sunrise Recreation area section of the American River Parkway and its abundant recreation amenities - enjoy the river, bike trail, horse trail, hiking and wildlife. Also located just one block to Sunriver Park. Easy access to restaurants, shopping, Hwy 50 and light rail. Don't wait! Offered at $419,900. MLS# 19045555. For more photos and information please visit 11100 Morgan River Court, Rancho Cordova, CA 95670.

Featured in a CBS13 story about if the Sacramento real estate market is in a bubble...

I hate the word "bubble" as it relates to the real estate market. Bubble, to me, is a loaded term that implies that things may burst. Prices can increase without impending doom. I think memories and the wounds of the recession and home price collapse in Sacramento from 2005 - 2011 are still fresh in a lot of people's minds. They are in mine! But the past Great Recession and price freefall is not a persistent framework for what may happen in the future.

The Sacramento County median home price rose to $390,000 for June 2019, which is nearing the previous peak price from August 2005 of $392,750. And CBS13 reporter Rachel Wulff asked "is the bubble going to burst?" No. Will the market cycle at some point lead to stagnation? Sure. At some point. Watch the full interview here.

14 years ago, lending standards were so loosey-goosey you could fog a mirror and get a loan. Borrowers could lie about their incomes, or even about having a job! Borrowers could finance more than 100% of the purchase price and get cash back at closing. Borrowers could get negatively amortized loans and make a "minimum payment" like credit card, only for the principal loan balance to increase every month. Some industry professionals were ethically fast and loose. There was rampant fraud and speculation. It drove prices in an unsustainable way with several consecutive years of 20%+ increase in price. Yes, prices tanked, but should they have gotten that high to begin with? NO.

That was 14 years ago. As such, the regulatory pendulum swung the entirely opposite direction. Borrowers must have verifiable income, assets, credit scores and employment. Laws have changed in favor of consumer information and transparency. The bad industry professionals have been eradicated.

And now prices over the last 8 years from the bottom of the market have climbed back to near parity from their peak 14 years ago. Or have they? No, they have not. Think about how the value of money changes over time. EVERYTHING is more expensive than it was 14 years ago. A gallon of milk. A loaf of bread. The guy who mows your lawn. Electricity. Minimum wage. And house prices. As I note in the CBS13 story, inflation has also affected home prices. If you adjust the peak price of $392,750 for CPI inflation to today's value, home prices would have to climb overnight to $512,220 to be equivalent. We are far from that number. We are not even close to that number. (Side note: when I got my masters degree in public policy, adjusting for inflation was literally beaten into us as a way to compare like-for-like when doing analysis)

Another interesting metric worth pointing out -- more than double the number of Sacramento residents can afford to purchase a home now than they could back at the previous peak in 2005. According to the California Association of Realtors Housing Affordability Index, in August 2005, only 19% of Sacramento residents could afford a median priced home, while as of Q1 2019, that is 44%. Sacramento remains much more affordable relative to the state as a whole, which is at 32%. And WAY more affordable relative to the nearby bay area counties.

Comstock's Magazine did an article about past housing cycles in Sacramento earlier this year, linked here. Housing markets are cyclical. Ups and downs. Our past recessions have been more like slumps and stagnation rather than catastrophic avalanches of decline as we saw in 2005 - 2011.

So while I will not try to predict the future, what I can say is that markets do cycle. Every year for the last 5 or so years around the late-summer time the media freaks out that "this is it!" the sky is falling and prices are declining OMG panic in the streets crazy!!! Calm down. The market seasonally cycles every year. The spring is nuts, summer slows a little, picks back up over the fall, and slows again during the holidays. Then spring is nuts again. Every. Single. Year.

Ask me next spring if anything has changed. But is a bubble going to burst? NO. There I said it.