Along with Natomas and Antelope, Elk Grove is one of the areas that has been hard hit by foreclosures, and where prices have dropped dramatically in response.  Paradoxically (or maybe not), it’s also one of the areas I expect to see on the leading edge of the market recovery. 

Sold price per square foot has fallen 29.4% over the last year, from $193.70 in June of 2007 to $136.68 in June of 2008.  The average home sold for $283,840 in June of 2008, down 32% from last June’s average of $418,937.

With the huge price cuts, demand is up 88.5%, with 139 units selling in June of 2007 versus 262 in June of 2008.  With the increase in demand (especially on the better priced REOs), homes are selling quite close to list price, with the average discount from list price being only about $900 (or 1/3 of 1%).

Distressed sales, which accounted for less than 20% of sales in 2007, now account for 81.7% of all sales.  There are 1.6 months of foreclosure “inventory”, and enough short sales to support sales for about another three months.

Related Articles:

Calling The Bottom

Antelope Stampede — Are Prices Bottoming Out?

Natomas Real Estate — Sales Up 130% with Heavy Competition

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