Elk Grove Market Update: November 2008
Distress sales dominate the Elk Grove real estate market and that is a reality in November as well. This is a steady foreclosure market, if there can be such a thing. 71% of all sales are foreclosures and 13.1% of all sales are short sales this November in Elk Grove. Non-distressed sales have declined by 35% over last year, an indication that some home sellers have decided just to wait out the real estate market.
But they might be waiting a while. One almost never sees price increases when the holidays are so close and this November is no exception either. Average price per square foot has fallen 23.6% over last year: from $163.45 to $124.86. Average sale price and median sale price have both fallen 22% year over year: from $347,121 to $270,743 and from $324,200 to $252,000 respectively.
The good news remains that at least someone is buying. Unit volume is up 70% over last November and the average home sold this November was about 45 square feet bigger than last year, although with most homes in Elk Grove being above 2000 square feet, that’s not saying much.
Inventory is at 4.1 months based on the last year of sales and 3.4 months based on the last six months of sales. Keep an eye on this number: it’s lower than it was last month and it will be the first to indicate a recovery.
