It seems like I am asked daily lately, where did our buyer's market go? Is it still a buyer's market? Or is this market in Elk Grove now a seller's market?
We have seen more SOLD signs! 
We have had more home sales occuring in the past few months and inventory holding steady in the Sacramento region. California Association of Realtors recently reported that sales of single family detached resale homes have skyrocketed to 84.9 percent in December 2008 compared to December 2007.
Inventory is down! This generally means it's a seller's market. In the Elk Grove area, we started 2009 with 985 active listings in Metrolist. This is down by approximately 30% over the beginning of 2008, which we began with 1333 active listings. The market is red hot right now and mutliple offers have become the norm.
But, wait a minute...prices are still declining. Not at the same rate as last year, but they are still declining. This generally indicates a buyer's market.
And a recent Inman News article stated that RealtyTrac senior vice president Rick Sharga told attendees at the Inman News Real Estate Connect conference in New York City this month that an analysis of 500,000 distressed properties in four states in the company's database found only about one in four were listed for sale in a multiple listing 
service, or MLS. This suggests that as many as 75 percent of distressed properties have yet to hit the market, Now, we have to remember that this is nationwide and real estate is very localized. Califonria usually leads the way in real estate cycles. Today RealtyTrac reports 1827 bank owned homes and 977 preforeclosures in Elk Grove, CA while Metrolist shows only 537 REO properties currently on the market or pending. This means we have a lot more inventory to go through in the Elk Grove area & we will still be seeing the wonderful yellow signs around Elk Grove announcing the REO Open Houses.
So back to the question, is this a buyer's market or not?
If you are a buyer, you have to remember how important it is to work with an agent who is experienced in writing offers on REO or foreclosure listings. Some agents do not have this experience and unfortunately it is the buyer who suffers. For tips on how to get your offer accepted on a REO or bank owned home, make sure to read Has Your REO/Bank Owned Offer been Rejected again? And your agent needs to have a good knowledge of the particular area or neighborhood which you are interested in purchasing, so that they can advise you on price. If you are thinking of buying, NOW is the time to be in the market...interest rates are great, prices are even better, so what are you waiting for?
If you are a seller, it is very important that you stay ahead of your competition. In a declining market, the active listings in the area become very important. Even if the sold comparables are at a certain level, if the competition is lower...you must be competitive with the active listings. To sell, in this market buyers must see value, so you must be the best priced, in the best condition so that buyers will see this value. We have a great tool available to our sellers, so that they can stay current on the market along with us. If you are thinking of selling and are interested in watching the market in your neighborhood, make sure to check out Sellers Stay Current on Your Neighborhood.
There will be more homes sold in 2009 in the Elk Grove area than in 2008! That's exciting for all of us! This market is neither a buyer's market or a seller's market currently...it seems that it's a buyer's market that acts a lot like a seller's market. That's not the real question though...the real question is whether it's a good time to buy or not? And yes, it is a great time to buy NOW.
Lori Mode and Bruce Durham, Keller Williams Reality, Elk Grove
www.AllElkGroveHomes.com
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