Elk Grove Market Update for January 2022
Elk Grove Median Value
The median price of homes in Elk Grove did go up about $36,000 from November to December so I was very interested to see what the new year would bring. The median price fell slightly in January from December's high of $640,000, but not much and it is still up 20% from last year. We are very much in a competitive market with lots of buyers demand even though interest rates have risen and will likely continue to rise.
Market Price Range
Free Monthly Report-What is Your home Worth?
There are two homes prices under $400,000 in Elk Grove this month, 10189 Lofton Court and 5423 Silver Poplar Lane. The house on Lofton court will not sell anywhere close to that price, though. It is being sold using a hybrid system between an auction sale and a traditional sale. Agents using the system price homes 20-30% below market value to create huge demand. If you are interested in this home, I am certified to use the US Homebids system and can help you. Do not wait. Homes listed this way sell very quickly and have limited showings, usually two or three open houses.
There are three homes for sale listed over 1 million dollars; 3125 Shelter Cove Lane, 8760 Flute Way and 5081 Willow Vale Way. The house on Willow Vale is in the Laguna Woods neighborhood. My first job was in the Laguna Woods neighborhood, just out of college. Our painting crew painted almost all of the homes built in this subdivision. The homes were well built and it is a very nice neighborhood.
Market Health
There has been a lot of concern over the market recently since prices have been rising so quickly and the Fed has been discussing raising rates more aggressively this year. It looks similar on the face of it to our last major market downturn during the Great Recession, but look at this graph provided by Ryan Lundquist, The Sacramento Appraisal Blog (Thank you Ryan).
The graph shows a much better credit score mix for loans written today compared to loans written preceding the Great Recession. In particular, look at the large amount of loans written with borrowers above a 760 credit score. Poorly written loans prior to the Great Recession was the largest factor during that downturn. The low levels of inventory, high quality of buyers and still very low interest rates suggest that we will have another year similar to 2021 with rising home prices. If interest rates continue to rise, that could slow the market in the long run.
If you are a homeowner and would like to follow the value of your home over time, here is the automated system I use for my own homes. I love reviewing how values are changing in my neighborhood. If you would like a more precise valuation, let me know, and I would be happy to provide you with a free comparative market report for your home.
If you are considering buying in the Sacramento, Elk Grove or Stockton area and would like to have all new listings in your area sent to you for free, let me know and I will set up the automated search for you. There is no better way to see what is on the market than to use your local Multiple Listing Service. You see everything!
If you just want to sit down and ask me questions about the market or about the process of purchasing or selling a home, let's meet for a cup of coffee. I will buy!
View Homes For Sale in Elk Grove
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