Prices Down! Real Estate Market Update for Elk Grove, 9/14/2022

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

Elk Grove Real Estate Statistics for Aug 2022

The sales price of single family homes in Elk Grove is still up over the last year, but since the Fed started raising interest rates earlier this year, the average price of homes has dropped 7% from $703,000 to $654,000.  On Average, homeowners have lost $49,000 in a very short period of time.  It is clear that the Fed will be raising interest rates again at their next meeting.  They have made their strategy very clear.  It is too bad they did not take their mandate more seriously and address inflation much earlier instead of waiting until it was so entrenched. 

It is remarkable how much household wealth has been lost since this all started.  Reuters says, "U.S. household wealth fell by a record $6.1 trillion in the second quarter to its lowest in a year...The latest fall was led by a $7.7 trillion decline in stock market values as equities slid into a bear market in the first half of the year on worries about surging inflation and the Fed's aggressive response with interest rate increases. The equity market drop outstripped a $1.4 trillion gain in real estate values."  If Elk Grove numbers are any indication of the real estate market across the country, the next reading will be even worse.

To add fuel to the fire, fiscal policy continues to add large amounts of stimulus.  I have no ability to see into the future, but I really do think it is time for caution.

Buyer Strategy

If I was a buyer, I would take my time.  Yes, interest rates will probably go up and raise the cost of your loan, but if prices have fallen 7% if a few short months, what will the next few months bring?  If you do choose to purchase now, make sure your offer price reflects the current market.  There are plenty of homes listed way too high.  If a home is priced appropriately, you still may find some competition, though. 

I think purchasing a home is one of the best ways to create wealth.  If you are buying for the long term, these market corrections do not matter that much, but I purchased my first home at a very bad time (1990) and it took me over 15 years to get back to even.  This is a time for caution.

Seller Strategy

Make sure your property is in its best possible shape and price your property correctly.  I have been holding a lot of open houses lately and buyers are just not very motivated.  They are being very patient.  If you have owned your home for any length of time, you will be fine. 

Fun Things to do in Elk Grove

We held our first Runnin for Rhett Pickleball tournament in Elk Grove this last weekend at Oasis Park.  It was a huge success and there was a lot of great pickleball played.  If you have been wanting to join in on the fun, come on out and play.  Maybe you will be ready for next year's tournament! ! !

 

 

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 (23)

Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Ray, I wrote buyer strategy today what my thoughts were please check it out and see what you think, Endre

Sep 14, 2022 10:58 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Thanks for sharing your market update.  Great information for buyers and sellers in your area.

Sep 15, 2022 01:24 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

I know this is happening around the country but we have  many areas, especially our 55 and over communities that have not shifted yet. Yes buyer demand is great and with such low inventory prices keep going up.

Sep 15, 2022 03:44 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Ray... we are not seeing price drops year-over-year... month-over-month, yes, but even those are fairly low. I'm sure we'll start seeing more price drops in coming months, but so far, so good.

Sep 15, 2022 04:47 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Great overview of the Elk Grove market and strategies buyers and sellers should consider.

Sep 15, 2022 04:49 AM
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

You always know what is going on in your market and people would be wise to reach out to you!

Sep 15, 2022 05:19 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ray, great market update for Elk Grove, and our markets are very similar.  Prices are still increasing, but sales are down, and DOM are up.

Sep 15, 2022 06:57 AM
Roy Kelley
Retired - Gaithersburg, MD

Families on the move will appreciate your local real estate reports.

Sep 16, 2022 05:44 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Good morning, Jim Patton.  I appreciate your update on your area in and around Modesto.  I hope business is good for you!

 I appreciate your assessment of the Austin area, Dorie Dillard Austin TX, and good morning to you!  Austin is such a special city.  I can see why it is still in demand.  Have a great weekend.  

Sep 16, 2022 06:18 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Good morning Kathy Streib.  I try to put myself in the shoes of my clients and think my job is more than just telling them the numbers.  I think I need to give them my opinion.  I have an economics degree and have been an investor since the late 80's.  I may not have a crystal ball, but I do have strategies.  I went all in on real estate during the Great Recession and now I am moving out of real estate and more into the stock market.  I will not know for another 5 years or so if it was the right thing to do.  We will see.  Right now, it looks like a terrible move. Ha!

Endre Barath, Jr., I will be visiting your blog shortly since you seem to be ahead of the curve and I value you your opinion.  I will be interested to see if your opinion is materially different than mine.  If so, I may have to re-think some of my ideas.

Sep 16, 2022 06:26 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Good morning, Richard Weeks and thank you.  I hope you are doing well!

Hi Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400.  We are in the midst of moving to a 55+ community in Goodyear, AZ.  I just asked my dad how the market is holding up and he says that buyer demand is still really high.  I will be following up with my Realtor here so see if he concurs.  I also want to see how the new home sales are going.  A few months ago, there was a three year wait from the time of purchase to delivery.  I imaging that has not changed too much, but it will be interesting to see if new sales are still as hot as they were. 

Sep 16, 2022 06:30 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I always appreciate your thoughts, Nina Hollander, Broker.  In many ways, your  Charlotte area has been acting much like our area for some time now.  I have been trying to decide if I would be a buyer in our market.  I imagine if I could find a home that is cash flow positive at our current prices, I might move forward, but it would have to be compelling.  The Fed has made it clear that, as Mr. T would say, "There will be pain."  Usually, that is a good time to step back and buy bonds which I almost never do.  I hope I am wrong.

Good morning and thank you, Kat Palmiotti

Sep 16, 2022 06:37 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Hi Brian England.  I appreciate your thoughts.  I am thinking I will have to start a Goodyear market update pretty soon.  I will need your help with that one!

 Thank you for your assessment of the Denver area, Joan Cox.  We have had similar markets for some time now. Have a great weekend! 

Sep 16, 2022 06:40 AM
Brian England

I don't know the Goodyear area very well and have always referred to others for buyers or sellers that reach out to me for that area but I would certainly be willing to help in any way that I can.  You will certainly be receiving ALL of my Goodyear and surrounding area referrals from here on out.

Sep 16, 2022 07:13 AM
Ray Henson

It looks like I better get my AZ license.  We will be able to help each other, Brian England.  I am enjoying today's rain!

Sep 21, 2022 11:53 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you very much,  Roy Kelley.  I always appreciate your cheery comments.  Have a great weekend!

Sep 16, 2022 06:41 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Ray,

This market report reflects why you are the go-to person in your Elk Grove market.  You are authentic! Buyers and sellers want to hear it like it is.  You tell it like it is.  Savvy buyers know that you are the person they want to represent them.  Nice job

Sep 19, 2022 02:30 PM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you Sheri Sperry - MCNE®.  I do try to be an open book with my clients.  I hope you are doing well and it is good to hear from you. 

Sep 20, 2022 06:14 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Ray Henson - I like how you put things calmly without sounding off alarms. It's all about strategizing, listening, and learning from the best and you are the best. 

Sep 21, 2022 08:01 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I learned a long time ago that I am not good enough to time major changes in the economy, but I can gradually shift from one market to another over time.  I moved into real estate over a few years circa 2008.  I have been moving some assets out of it for about 3 years now.  I have one more move to make and then I will be done.  The question then becomes, where do I move next, Patricia Feager, MBA, CRS, GRI,MRP? I have moved more into stocks and crypto, but that has not looked too good lately.  Ouch!  I will continue to shift that direction for the foreseeable future.  Is it the right thing to do?  Who knows?  It will take a few years to know if it was a smart or a dumb shift.  

I hope you are doing well!

Sep 21, 2022 11:59 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Ray Henson - Living without regrets with honesty and integrity is the best way to live. There is nothing worse to mutter than I could have, I should have, or I wish I did this....

As long as you live and breathe and have faith your family with be proud. 

Sep 21, 2022 04:56 PM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you, Patricia Feager, MBA, CRS, GRI,MRP and I hope so.  It is too late for me to change now.  😉

Sep 22, 2022 09:21 AM