Elk Grove Real Estate Market Update
We are barely holding on to yearly gains for our median and average prices in Elk Grove, but the average price per square foot is even for the year. Sales volume is was down and days on market are up. We hit a high in April of $703,000 for the average price of homes sold and then the Fed started raising rates. Their goal was to slow the labor market down and bring down housing prices. They have done a good job of driving our prices down in Elk Grove. Our market is down 8.9% in 5 months. That is $64,000!
Here are a couple of interesting tidbits from Motley Fool:
- US median income is up ~15% since 2019.
- US median house price is up ~50% since 2019.
- Mortgage prices have gone from 2.75% to almost 7% this year.
- The typical home buyer's monthly mortgage payment is up 15% in the last month and a half.
- The recent rise in rates is causing many people to cancel or delay buying a home.
- The average earner has to spend 50% of their income on mortgage payments right now.
Elk Grove (and the rest of the country) is still not building enough homes to keep up with demand, but the demand side is getting hit hard, especially when you consider how far the stock and bond markets have fallen this year.
AAII Investor Sentiment Survey
(American Association of Individual Investors)
Bullish: 23.9%, up 4.0 points
Neutral: 21.3%, up 2.1 points
Bearish: 54.8%, down 6.1 points
The good news is there are a lot more options for you to choose from right now. There is now over 200 Elk Grove listings available and sellers are more willing to negotiate. One of my favorite strategies is to look for homes on the market for 30 to 45 days without a price change and submit a reasonable, lower priced offer. I have always been amazed how many buyers (for my listings) wait for the price change to occur and then make their offer only to be faced with two or three other offers. The early bird does catch the worm!
There is a chance that prices will fall over the next few months so be careful. Long term you should be fine, but the short term could be rocky.
If you have owned your home a few years, then prices are still very good. I will even be putting my home on the market in the next couple of weeks. Just make sure the house is looking good and that the price is right. I have done a lot of open houses lately and buyers just do not have much conviction right now. Their is nothing compelling them to buy right now so price is very important.
Coming Soon Listings
I have two listing that will be on the market soon. One is a three bedroom, two bathroom, 1,273 square foot home. It is cute home with lots of upgrades and a cozy backyard.
The other home is located in Old Elk Grove. It is a three bedroom, two bathroom, 1,598 square foot home.
18' Sea Ray For Sale
Do you want to explore the Delta and our nearby lakes? We are selling our boat. If you are interested, click here.
Elk Grove Real Estate Market Update, August 2022.
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