Second Place is Last Place, Elk Grove Jan. 2021 Real Estate Update

By
Real Estate Agent with eXp Realty of California, Inc. (lic. #01878277) DRE# 00949880

Elk Grove, January 2021

Elk Grove January Sales 2021

Buyers

     The market in Elk Grove is very difficult for home buyers.  You get a hint of how hard it is when you look at the numbers.  Prices are way up year over year.  Few homes are on the market and, when the few houses available hit the market, they are in contract very quickly.  Here is what we are facing day to day.  A house comes on the market.  My very well qualified client puts an offer in way over the highest recent sales and offers to pay all costs in the contract (traditionally, the seller pays most of the fees with a split of escrow and title costs).  My client also offers to shorten every contingency period.  If the appraisal would have come in low, my client agrees, in writing, to pay a hefty amount over appraised value.  And yes, in writing, I agree to cut my commission.  This is a win-win-win solution for the seller.  What did that offer get my client?  Second place out of 27 offers.  In real estate, second place is last place.  There is no consolation prize.  It is tough to call a wonderful, qualified buyer and tell them, "Sorry, we did not get it."  It is also tough to tell buyers that they have to give up so much of their contractual protections to buy their first home.  It is really hard to protect your client when the market gets this heated.

Sellers

     This is a very good time to be selling your home.  The one disadvantage would be if you are looking to purchase a replacement home too.  The purchase will be the challenge.  One other caution.  There are a lot of groups, agents and investors offering to buy homes directly from homeowners right now (also known as iBuyers).  This can be a good option at times.  These companies usually offer to close quickly, based on prices of recent home sales in the area, with no sales commission, no fees and as hassle free as possible.  The market is so hot right now, though, that your house really does need to be exposed to the largest audience possible.

     I receive many of the same solicitations.  One investor recently offered to purchase one of my rental properties.  He offered me all the conveniences that I mentioned above.  It sounded pretty enticing until we discussed price.  His offer price was a full $100,000 under market value.  I am willing to face a few hassles for $100,000.  It is an excellent market for home sellers.  Take advantage of it!  Spend a little time getting your home ready and reach out to a solid agent to help you through the process.

Laguna West, Lakeside and Stonelake

Laguna West, Lakeside and Stonelake Recent Sales

     I always like to look at this neighborhood because I have lived here since 1999.  The numbers of homes sold here is a smaller sample size so it can skew the numbers a bit.  To solve that problem, I use a rolling average of the last three months.  The numbers are still inconsistent, though.  It looks like prices have not appreciated as much in this area as in the whole of Elk Grove.  It turns out the average size of homes sold in 2020 was 2,456 square feet versus an average size of 2,200 square feet in 2021.  The homes sold this year have, on average, been 256 square feet smaller so the appreciation values look lower than for all of Elk Grove.  Price appreciation has been higher than the table above indicates.

     Today, the supply of homes available to purchase is very low.  Laguna West has only four homes available.  Stonelake has one available and there are no homes even available in Lakeside.

    My friend, Charley Schmitt from ReMax Gold, has this to say about the Sacramento region, "I don't know how to respond to this market other than  in my almost 48 years of being in this business full time, it has never been more difficult to be a Realtor.  It is hard to get listings and even harder to get wonderful buyers into a home."  She is right.  Agent after agent says much the same thing.  If you are going to purchase a home now find a really good agent and be persistent. 

 

View homes in Elk Grove

View Homes in Laguna West, Lakeside and Stonelake

View 55+ Communities in Elk Grove (if available)

 

December Market Reports

Elk Grove

Laguna West, Lakeside and Stonelake

Other Markets

Saramento Market Report-Ryan Lundquist

Bay Area Update-Patrick Carlisle, Compass

The Californians are Coming

 

 

Posted by

             eXp Realty of California, Inc

Raymond Henson, SRES, GRI, e-Pro

Past Client Testimonials   

3412 Babson Drive

Elk Grove, CA 95758

RayRHenson@gmail.com

916-698-8415

 

 

Comments (25)

Raymond Henson, SRES, GRI
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Good morning Barbara Todaro.  I agree and do have a few listings on the horizon.  I do like helping my clients buying a home too.  We will be writing another offer today.  Keep your fingers crossed!

Feb 16, 2021 05:30 AM
Raymond Henson, SRES, GRI
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you very much, Brian England. I appreciate your positive support!

Feb 16, 2021 05:32 AM
Raymond Henson, SRES, GRI
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Good morning, Grant Schneider. I would consider selling one of my rentals to do a 1031 exchange, but I am worried about the purchase side of the transaction.  It is crazy out there!

Feb 16, 2021 05:33 AM
Raymond Henson, SRES, GRI
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

The buyer I am working with right now has an incredible, positive attitude and has great credentials, Nina Hollander. In normal times, we would be in contract quickly.  She keeps asking, "where are all the people coming with all the money?"  I thought it was tough when all the hedge funds came in and snapped up houses sight unseen.  This is worse.

Feb 16, 2021 05:37 AM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Good morning Raymond Henson, SRES, GRI thank you for the very informative market report

Feb 16, 2021 06:21 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

It is a challenging time for home buyers and their agents.

Feb 16, 2021 07:08 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Raymond, it is a tough time for buyers in many markets right now, and just have to hope more homeowners will list soon.

Feb 16, 2021 07:12 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Good morning Raymond,

Somehow, I did not realize that your area was hot, but then that is because I have not been there.  All my best wishes with your offer and your listings.  A

Feb 16, 2021 07:51 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Raymond - a hot market can be frustrating for buyers competing as well as sellers who wonder if they have chosen the right offer.  Sometimes, second place in real estate can lead to some happy endings when things seem to happen.  Good luck to you and your buyers.  

Feb 16, 2021 07:59 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Raymond and always good to compare last year figures with today figures.  Good Job.

 

Feb 16, 2021 08:27 AM
Raymond Henson, SRES, GRI
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you Rocky Dickerson.  I look forward to your tips on turning these reports into video reports.

I agree Roy Kelley. I feel like first time home buyers are really getting baptized by fire.

Feb 16, 2021 09:00 AM
Raymond Henson, SRES, GRI
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I have never seen it like this Ron and Alexandra Seigel.  We have put in several offers and they are all very similar with people guaranteeing to pay way over appraised value.  It is a tough game for buyers to play.

I feel like we have been very close, Michael Jacobs.  Last year, I did get an offer accepted with the second best offer.  The agent and seller liked our demeanor.

Feb 16, 2021 09:03 AM
Raymond Henson, SRES, GRI
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Good morning, Will Hamm.  Ironically, I thought we had a low inventory last year.  I hope this is the low point and sellers begin to enter the market again soon.

Feb 16, 2021 09:04 AM
Raymond Henson, SRES, GRI
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Joan Cox, I am hoping more sellers come out as the vaccine get distributed and people feel more comfortable opening up their homes again.  Hope you are doing well!

Feb 16, 2021 09:08 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Raymond, this is such a common scenario in so many areas right now.   Hope we see more inventory soon.

Feb 18, 2021 06:33 AM
Raymond Henson, SRES, GRI
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Me too, Joan Cox. I am ready to get back to a more normal market. 

Feb 18, 2021 07:09 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Raymond, our numbers are way down too, and restaurants have opened 50%, and are FULL, so surprised we have not seen more listings come on.

Feb 18, 2021 07:11 AM
Raymond Henson, SRES, GRI

That is really good to hear, Joan Cox.

Feb 18, 2021 07:18 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Friday morning, Raymond.

Take care, be safe and have a great day.

Feb 19, 2021 05:22 AM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Great info for your market and very similar to our market here in San Diego.

CA is still the place to be!

Feb 19, 2021 06:47 AM
Raymond Henson, SRES, GRI
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Hi Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets, it looks like you are correct.  Our market has seen double digit price appreciation just this year alone.  It is truly remarkable.

Feb 19, 2021 07:33 AM

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