Real Estate Ray's Blog: Elk Grove, Sacramento and the Real Estate Market

Elk Grove, Sacramento and the Real Estate Market

Elk Grove March 2020 vs. March 2019

Elk Grove, CA  

VIEW CURRENT HOMES FOR SALE IN ELK GROVE

Laguna West Lakeside Stonelake, Elk Grove

VIEW CURRENT HOMES FOR SALE IN LAGUNA WEST LAKESIDE AND STONELAKE

 

Elk Grove

     These charts show sold homes that went into contract early in the year, mostly January and February.  Doesn't that seem like a lifetime ago?  The stay at home order due to COVID 19 has created a lot of market uncertainty not reflected in these past numbers.  The pandemic has definitely affected our Elk Grove market; 11 homes were put on hold and 11 listing contracts were canceled since the middle of March.  The number of homes going pending has also gone down.  As of April 10th, Elk Grove has 96 homes for sale with a median price of $483,249.  It will be interesting to see how the current conditions will affect our Elk Grove pricing. (note-the Laguna West, Lakeside, Stonelake chart reflects a very small sample size and is not indicative of the overall market).

The Sacramento Region

       Ryan Lundquist explains in this week's, Sacramento Appraisal Blog, "Right now we are beginning to get some solid pandemic real estate data...but we’re still waiting to see exactly what happens to the direction of prices over time."  Since March 12th, he reports that 517 listings were put on hold, 437 listing contracts have been canceled, the number of homes going pending is down and the number of new listings is down.  On a positive note for home sellers, 43% of the homes that went pending since the lock down have had multiple offers.

Other Markets and Future Pricing

     It is really tough to see into the future, but maybe we can make some educated guesses based on past markets hit by similar events.  In Mike DelPrete's video, The Real Estate Pandemic Survival Guide, he shows how the pandemic has affected the real estate market in other hard hit areas, including China and Italy.  He also looks at some other past events.  In each case, local markets were affected negatively, but picked up again over time.  The amount of time depended on the severity of event.   In Jonathon Miller's  Housing Notes, he states "If the outbreak is not prolonged, there is still potential for a release of pent-up demand, but this depends on the extent of damage done to the economy" about his New York area.

     Local Prices

       There are a couple of positives in our market.  Most home owners still have quite a bit of equity in their homes and we still have a scarcity of homes in California.  On the other hand, a market with a lot of uncertainty that includes a loss of  wealth and higher unemployment usually means lower prices.  How much lower?  It really does depend on how quickly we can get back to normal.  Elk Grove put in place the stay at home order early on so maybe that will enable us to get back to normal soon. Ryan Lundquist polled followers on Twitter asking, "Would you buy a house now during the pandemic?"  The interesting, non-scientific results so far; 40.4 YES, 32.3 NO, 24.7 MAYBE.  Would I buy right now?  Yes, I close on a house next week.  I can't see into the future, but it has been my experience as an investor that uncertain times are times of opportunity. Only time will tell.

Why Elk Grove?

Thank you to Ryan Lundquist for his input and introducing me to the work being done by Jonathon Miller and Mike DelPrete.  

             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

 

 

Comment balloon 13 commentsRaymond Henson, SRES, GRI • April 09 2020 10:43PM

Comments

Hi Raymond Henson, SRES, GRI - lets see what happens after this is over.  Look like need is there.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 4 months ago

Elk Grove is definitely a wonderful place to call home and I know that you are the agent to call if anyone is looking to buy or sell a home there!

Posted by Brian England, MBA, GRI, REALTOR® Real Estate in East Valley AZ (Arizona Focus Realty) 4 months ago

Today, the Sacramento Bee published an interesting article regarding the Sacramento market.  

Posted by Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277)) 4 months ago

Grant Schneider, I am looking forward to when this is over.

Thank you Brian England, it has been a wonderful community to raise our family.  

Posted by Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277)) 4 months ago

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

It has been many years since we visited your area. 

Posted by Roy Kelley (Realty Group Referrals) 4 months ago

Hello Raymond - I like the top photo you share of an Elk Grove street sign - it's quite appealing. As for predictions of real estate or anything else, I will leave that to the psychics and seers who specialize in such things while maintaining my sense of skepticism.    I am sure prospective buyers/sellers in your area will appreciate your fact-based real estate report.  

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 4 months ago

Well with the virus this year surprising that it is that good.  I have a goose egg for March.

 

Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) 4 months ago

Roy Kelley, you will have to visit agian one of these days.

Michael Jacobs, thank you.  I love those streets.  In the fall, all the trees turn different colors of red and are even more beautiful.  Unfortunately, the trees are living on borrowed time.  They have a disease and the HOA thinks they will need to be replaced over the next few years.

Will Hamm, I have a goose egg as well.  Are they good to dye for Easter?

Posted by Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277)) 4 months ago

Raymond,

What a great comprehensive report, and I love the photo.  Sad to hear that they will need to be replaced...Wishing you a great weekend. A

Posted by Ron and Alexandra Seigel, Luxury Real Estate Branding, Marketing & Strategy (Napa Consultants) 4 months ago

Raymond, great market update for Elk Grove, and still pretty good even with the issues plaguing our industry.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) 4 months ago

Thanks for the update on this community, all the best to you as you get many of these properties listed and sold.

Tracy

Posted by Tracy Hawke, The Woodland Companies!, Wisconsin Forest Land Experts! (Woodland Management Service) 4 months ago

 Ron and Alexandra Seigel,  They are replacing them a section at a time.  It is sad, but I will continue to enjoy them while they are still there!

Joan Cox,  Hopefully, we get through this quickly.

Tracy Hawke, The Woodland Companies!,  thank you for your input.

HAPPY EASTER TO YOU ALL!

    

Posted by Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277)) 4 months ago

Raymond, Yes I guess the Real Estate market has changed all across the country. Things will get better and we all hope this starts turning around quickly!

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Home and Condo Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) 4 months ago

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