Does New Inventory Cause Market Prices to Go Down?

[Chris Wilson]

I have a condo in downtown Sacramento a few blocks from the new arena. It appraised at 300k with 150k in equity. I am debating on doing a 1031 with the property for 3 out of state rentals that cashflow 250-400/month each vs keeping the property as a rental. With current financing, the condo would cashflow 300/month. We are also considering refinancing, purchasing a couple of the out of state rentals, and renting out the downtown property.

Sacramento is pouring tons of money into it's downtown including a brand new basketball arena and surrounding complex. There are also plans to build around 600 new residential units of various types throughout downtown.

How will the new inventory affect prices and does anybody have advice on what the best choice would be?