Elk Grove Real Estate Market Update, It's Going to be a Bumpy Ride

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

The Fed just raised rates once again with a promise of more to come.  Even safe assets are being hit hard.  Michael Murphy, the author of The New World Investor blog, says, "The 10-year US Treasury bond is on pace for its worst year in history with a loss of 19.5%....This is THE risk-off asset.  Never in history, in an extreme draw down for stocks, have Treasurys, THE risk-off asset, gone down more than stocks-until now."  Stocks, bonds and Cryptocurrencies are all down.  I may not have a crystal ball when it comes to the housing market, but, to paraphrase the incomparable  Betty Davis, fasten your seat belts, it's going to be a bumpy ride. 

Elk Grove Market Statistics for October

View Homes in Elk Grove

October Real Estate Statistics for Elk Grove, CA

Our Elk Grove market does not look too bad when you compare year over year numbers.  I will point out that this is the first time that the median price has gone negative in a very long time.  I think it is more appropriate to measure the market from earlier this year when the Fed started raising rates.

Our average price hit $703,000 in April.  In October, we are $71,857 down.  Housing prices have fallen, on average, 1.7% per month over that period.  I do not see the trend changing any time soon with our inventory of homes up substantially to a 2.77 month supply and days on market up 122%.  Homes that are available now have been on the market much longer at 53 days.  I imagine the trend could reverse itself, but I would not bet on it.

Jerome Powell

"The incoming data since our last meeting suggest the terminal rate of Fed Funds will be higher than previously expected, and we will stay the course until the job is done...It is very premature to be thinking about a pause in our interest rate hiking cycle."

Buyer Thoughts

There are a lot more choices on the market right now and you can afford to be more patient looking for your perfect home.  You also have the ability to negotiate more than you have in the past.  You can negotiate on the price of the home, maybe request a few more things for the seller to repair prior to close or ask for seller concessions.   Seller concessions are just some of the buyer's costs that the seller agrees to pay at the close of escrow.  It can be for many items, but generally I have seen buyers ask for the seller to pay some of the lender costs.  It was a very prevalent request during the Great Recession.  I have started to see buyers ask sellers for a mortgage buy-down.   It is used to get a better interest rate on their loan.

View Homes in Elk Grove

It is a good time for buyers in a lot of ways, but there is always competition so do your best to be fair.  If the seller has priced the home correctly, there is sure to be others that you will be competing with and to get your offer accepted, creativity could help.  If you have to ask for a large credit, maybe bump the fair asking price up some.  Your savings from a well used seller credit will be worth the small bump in price and the seller will be much more likely to accept your offer.

 

Seller Thoughts

The Elk Grove market has shifted decisively.   I do share your pain.  I have just put one of my properties on the market and know first hand what the market is like.  Make sure the home presents itself well, maybe hire a Stager to help.  Many Stagers will come to your house for a modest fee and tell you what needs to be done using what you already have.  

Also make sure you price the home appropriately.  Look as recent sales in your neighborhood.  Are they a few months old?  Maybe you will have to discount a bit from those recent sales to account for our 1.7% per month gradual decline in home prices.  Remember, if you price your home too high, you may even have to discount further next month.

More than likely, you will have to negotiate some too.  Be prepared.  We had a pest inspection for the property I just listed and did all of the work prior to listing it.  Potential buyers would have most likely asked for those repairs to be done anyway and I was able to get the work done on my schedule with the contractors I wanted to use. 

Conclusion

The housing market has changed drastically in the Elk Grove area and it will continue to change.  I am not 100% sure where our market is headed, but I think the indicators do show that we are in for a bumpy ride.  Every market has challenges and every market offers opportunity.  Keep your eyes open and participate when the time is right for you.  If you have any questions about this market, give me a call.  I would be happy to help.

Elk Grove Market Report for September

 

 

 

 

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 (13)

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Ray... that is a B-I-G change in sales volume and days on market! I agree, it will be a bumpy ride for a while. Fasten those seatbelts!

Nov 05, 2022 10:27 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

What a difference from the beginning of the year, Nina Hollander, Broker.  I'd like to think the spring will bring a change.  Hope springs eternal!  I just would not bet on it, although in April I would not have suspected that would be our high for the year or that prices would have fallen so far so fast. 

Nov 05, 2022 10:31 AM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Ray Henson very valuable detailed real estate market report for Elk Grove.

Nov 05, 2022 10:49 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you, John Pusa.  You create some great market reports yourself and anyone interested in the Glendale, CA area should be utilizing them.  

Nov 05, 2022 11:17 AM
John Pusa

Thank you Ray Henson

Nov 05, 2022 08:12 PM
Roy Kelley
Retired - Gaithersburg, MD

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

Have an outstanding weekend.

Nov 05, 2022 03:15 PM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you very much, Roy Kelley.  I believe the week will be outstanding.  We are off to Thailand tomorrow!  I hope your week goes very well too!

Nov 05, 2022 05:43 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Ray Henson - I liked how you cut to the chase and spelled it all out clearly and concisely. 

Safe and happy travels to Thailand! I hope you and your family enjoys the vacation. I will look forward to seeing your photos when you get back! My daughter and her husband were there a few years ago and shared gorgeous pictures. Have fun!

Nov 06, 2022 01:56 AM
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Even though some things have gone down that still appears to be a very solid market.

Nov 06, 2022 03:47 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you very much Patricia Feager, MBA, CRS, GRI,MRP. I will try to share some pictures on ActiveRain while I am in Thailand, but I will probably post more on FB, if you follow me there.  Either way, I will try to take some good pictures.  We take off at midnight!

It is just not showing up in the yearly numbers yet, Brian England.  If we continue down the current road, the yearly numbers will not be good in April, probably sooner.  It is good to hear from you!

Nov 06, 2022 04:14 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

The markets seem to be heading for that bumpy ride Raymond. I'm noticing here that homes are on the market longer and reductions are happening everyday!

Nov 06, 2022 05:18 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I was looking through the homes on the market and the days on market are way up even compared to the homes just sold, Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 and a lot of listings are being cancelled.  Thank you for stopping by and have a great Sunday!

Nov 06, 2022 05:28 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, that IS a huge decrease, especially from April.   I do think this coming year should be interesting!

Nov 06, 2022 06:47 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I do believe you are correct, Joan Cox.  I hope you have a wonderful Sunday!

Nov 06, 2022 07:27 AM