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Elk Grove Real Estate Market Update, January, 2023

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

     In my December report last year, I noted, "It is interesting to note that in the last seven months preceding December, the median price has not changed that much...The median price took a sizable jump in December to $640,000.  It looks like the spring buying season might be starting early this year."  That was the case until April.  The market was hot and we hit an average price of $703,000 in April, then the market changed on a dime.  The Fed started raising rates quickly, inventories started to rise and prices started falling.

     What is the old saying about stock investing?  "Don't fight the Fed!"  It seems appropriate for the housing market as well.  This year is starting quite differently than last year with housing prices headed down and inventories way up.  There is an ongoing debate regarding a soft landing (mild recession) versus a hard landing (deep recession).  The CEO of Restoration Hardware stated recently,

"People keep saying, are we going to be in a recession?  We're in a recession.  Anybody who thinks we are not in a recession is crazy."

Elk Grove Real Estate Statistics, December 2022

     I certainly do not know what will happen, but it seems as though we are dependent on what the Fed does moving forward and how mortgage rates react.  Markets can change and sometimes they change very quickly, much like last year.  It is best to be ready to react to changes quickly.

Home Buyers

     Buyers were lucky just to find a house early last year.  There was little inventory and there was a lot of competition for that small inventory.  The market is much better for those looking to buy this year.  Housing inventory is up and the chances of finding a home just right for you are much better.  It is easier to negotiate.  Sellers are more willing to consider lower offers and do more requested repairs.  Some sellers are also helping buyers to pay down their interest rates.  It is a much better environment to purchase a home, in my opinion, than last year.  Prices may continue to fall, but it has been my experience that home buyers do better in the long run when they purchase in times like these.  

Home Sellers

     We are well below the highs of last year.  Make sure you look closely at the prices of similar homes to yours that sold recently.  If the home sold more than a month ago, you will probably need to adjust the price of  your home accordingly.  If your neighbor's home sold months ago, the adjustment will need to be even more significant, probably about 1.5% to 2.0% lower per month, in Elk Grove.  Remember, though, each neighborhood is different.  Check your neighborhood or call me and I can help you find recent sales for your neighborhood.  Home buyers may start getting active again in the spring so check the numbers regularly.  If more buyers enter the market again (demand up), it could make for a little better pricing. 

Conclusion

     No one really knows what the future will hold.  Last year, the Fed predicted that their Fed Fund rates would end 2022 in the 1% range.  They were very wrong.  The rate ended the year at 5.1%.   My guess is that our market will continue down its current path until the Fed changes their stance.  Still, I am optimistic that five years from now this will look like it was a good time to buy.  For better or worse, I am a net buyer in today's real estate market using Real Estate Investment Trusts (REIT) and Delaware Statutory b    Trusts (DST). I also continue to dollar cost average into stocks, bonds and cryptocurrencies.  They are all long term decisions. 

Note-I have sold some real estate lately to move into the REIT's and DST's.  The decisions made sense for my retirement plans which leads me to say, check with your financial planner and/or your accountant for your personal situation and which investments make most sense for you.  We are all in different situations and what makes sense for me may not make sense for you. 

 

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 (34)

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 really like your last sentence Ray. It's so true that what works for one does not necessarily work for others. Do what makes the most sense for you!

Jan 20, 2023 07:01 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you, Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400.  We can share our knowledge, but we just can't make the ultimate decision regarding our client's purchases.   

Jan 20, 2023 02:17 PM
Roy Kelley
Retired - Gaithersburg, MD

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

Have an outstanding weekend.

Jan 21, 2023 08:53 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Hi Roy Kelley.  I hope your wife is recuperating and healing well. I have been thinking about you both quite a bit lately. 

Jan 21, 2023 09:35 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Ray:

Enjoy your Alabama trip!

I always enjoy reading your insightful and thorough market reports for Elk Grove. Lots of shifting going on and I expect we will see more changes in the next few months.

Jeff

Jan 21, 2023 11:01 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Ray Henson - I like how you outlined this marketing report so succinctly! It all made logical sense to me! Keep up the great work!

Jan 21, 2023 04:01 PM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you, Jeff Dowler, CRS.  I get inspiration from your monthly reports from paradise.  I love the Southern California areas you specialize in.  

Jan 22, 2023 05:34 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you, Patricia Feager, MBA, CRS, GRI,MRP.  I value your comments and thoughts regarding the real estate market (and everything else 😃).

Jan 22, 2023 05:36 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Ray Henson  the rest of the country and many on Active Rain do not get that I have been saying this since I joined the platform LA and CA are generally 6 months ahead for better or worse when it comes to Real Estate Prices and activities, Endre

Jan 23, 2023 11:10 PM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I remember that you were the first one to mention the change in direction of the market last year and the market did change abruptly.  I know I will be following your blog closely in the future, Endre Barath, Jr.  I had to sell two homes last year.  You are one of the reasons we moved so quickly.

Jan 24, 2023 04:32 AM
Roy Kelley
Retired - Gaithersburg, MD

Good Tuesday morning, Ray.

Have a great day and a very productive week.

Jan 24, 2023 07:13 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you, Roy.  I hope you and Dolores are doing well too.  

Jan 25, 2023 07:26 AM
Roy Kelley
Retired - Gaithersburg, MD

Good Saturday afternoon, Ray.

Have a very productive weekend.

Jan 28, 2023 10:33 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you, Roy Kelley.  I am off to play pickleball today.  Productivity will have to wait until tomorrow.  😂 I hope you have a wonderful weekend!

Jan 28, 2023 10:38 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Your market update for elk Grove here was very thorough and gave me a good understanding of your markets Ray Henson 

Jan 28, 2023 04:22 PM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you, Paul S. Henderson, REALTOR®, CRS.  I appreciate you stopping by and leaving a comment.

Jan 29, 2023 11:39 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Thanks for sharing what's happening in your selling market, Ray. It is very similar to ours in some ways. Happy Sunday to you!

Jan 29, 2023 12:39 PM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Hi Wanda and thank you.  I always enjoy hearing what is happening in your St. George, Utah area.

Jan 30, 2023 09:22 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Again thank you for placing these numbers in an easy to read format. I now know more about your area than I ever thought I would Ray Henson 

Jan 30, 2023 09:22 PM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I think that is one of the amazing benefits of ActiveRain, Paul S. Henderson, REALTOR®, CRS.  We get a great perspective on markets across the country.  I know I appreciate all that you share about your area in Tacoma.  Thank you!

Jan 31, 2023 05:01 AM