We are starting to see inventory build and pending sales activity decline in the Central Valley. The hedge fund buying spree is subsiding as local home values increase and rents do not provide the desired cap rates. The flurry of primary resident home owner activity has also decreased the past 3 – 4 weeks. This may be due to an accelerated spring demand for home purchases in anticipation of increased mortgage rates. The next few months will be telling. Increasing inventory and diminishing demand should lead to a softening of prices.