- Sacramento Real Estate Adventures - Your Sacramento Real Estate and mortgage blog!

Are you looking to buy a home in Elk Grove? Have you ever wondered if you can get a better deal on a bank owned home, short sale, or private party sale?

I ran some numbers to see if I can answer this question!

Just a quick lesson for those of you who do not completely understand the three categories... let's review them for a minute.

Elk Grove Short Sale: These transactions involve a sellers who owes their bank more than their home is worth. The buyer makes an offer to the seller, then the seller has to obtain a short sale approval from their bank. This means the bank agrees to release the lien (mortgage) on the home, even though they will not be paid back in full.

Elk Grove Bank Owned Home: These homes have been foreclosed on and are now owed by the bank and are more than likely vacant.

Private party sale: These are homes that are NOT bank owned or short sales. They are private party sales, probate sales, bankruptcy sales and other non bank owned or short sale transactions.

The first item we are going to look at is how long on average bank owned homes, short sales, and private party sales stay on the market before they are sold.

It makes sense that Elk Grove short sales lead the pack having the most average days on the market of 154. The short sale process can take months to get an approval back from the bank. This makes sense that short sales take much longer to closes escrow than the other two categories. Elk Grove Bank owned homes are in 2nd place at at 47 days on the market and private party sales are at 42. This is because these homes are ready to sell today as opposed to a short sale.

Next... let's look at average cost per square foot for an Elk Grove home based on area sales.

If you compare on average the cost per square foot of a bank owned home, short sale listing, or private party sale... the best deals on average is the Elk Grove bank owned home. As you can see, you can get the cheapest square foot cost for a bank owned home... but a short sale gets you pretty much the same deal. Normally, there are issues with the condition or maintenance for these homes... which provides a discount in price. Elk Grove private party sellers are selling their homes as quickly as banks, but are netting more on average! That is great news for those looking to sell an Elk Grove home or investment property!

Finally... let's look at how many months of inventory we have left in the Elk Grove Real Estate Market.

If you look at all the single family homes currently on the market, it would take us an average 2 months to sell every last house currently for sale in Elk Grove.

I thought it would be fun to check the absorption rates for each of our three categories (bank owned, short sale and private party sale). What is the absorption rate? The absorption rate tells us of the available homes for sale in Elk Grove, how many were absorbed (purchased) by buyers.

Again the bank owned homes win again! Over 70% of the bank owned homes that were available to buy in June 2010 were sold. When you compare that to figure to a short sales at 41% and private party sales at 46.8%... Elk Grove bank owned homes are certainly getting snapped up almostv2 times as much as short sales and private party sales.

In conclusion, bank owned homes provide you on average the best price, but as you can see there is more competition for these homes based on the absorption rate.

Be prepared to move quick when a new bank owned home comes up for sale... because other buyers will be.

Expect to pay more for Sacramento private party homes for sale, but remember they are often in much better condition than a short sale or bank owned home. Keep in mind these are averages and every neighborhood will reflect different numbers, but it will give you a indication of what is going on in our Elk Grove Real Estate Market as a whole.

If you are looking to buy or sell a home in Elk Grove, please call me and we can discuss how I can help you navigate through our historic real estate market!

Elk Grove, Ca. real estate market has been hit hard over the last several years. I thought it would be a good time to look at where we are and see if the pace of foreclosures has slowed any.

If you are looking to buy a home in Elk Grove, you might be surprised how affordable homes have gotten in our area!

Many of my clients ask if there is still room for the Elk Grove area to come down further in price.

The truth is I don't know for sure! We are dealing with historic times and there are so many variables to factor to determine this answer.  With Government interventions and the current state of the World economy... there is no way to really predict what will happen for sure.

What I can tell you is the local Elk Grove Real Estate Market has appeared to stabilize over the last several months. With the continued flow of foreclosures and the inventory of homes that are now bank owned... it is really hard to say what will happen. I can tell you that we have seen a huge correction in our prices since 2005! At this point, it is possible to buy a home for less than one would pay in rent. I would imagine if our prices suddenly dropped again we would see a big impact to our local rental market. Fortunately what we have going for us right now is banks are more willing to approve short sales and loan modifications. This way we don;t have to wait until the foreclosure to address the problem.

Here is a graph that shows what has happened in the Elk Grove Real Estate Market. Over the last couple of months we have seen the market stabilize.

As you can see over the last 3 years... for the most part Elk Grove has also seen a steady flow of foreclosures. It doesn't appear to have slowed down unfortunately!

What we have seen over the last 3 years, is a shift in what happens once a homeowner in Elk Grove resident falls behind on their mortgage.

As you can see in 2007 and 2008 the banks flooded our Elk Grove Real Estate Market with bank owned homes. During that time you can see very little foreclosure sales (when the bank auctions off the property for sale) were postponed back then.

We are now seeing more Government incentives for homeowners and banks to try a short sale or loan modification instead of foreclosure. We are also seeing more and more cancelations or delays of foreclosure sales. Many banks have figured out that they are better off to work with the homeowner as oppose to just automatically foreclosure as in the past. 

We have also seen a shift of what type of Elk Grove homes are being foreclosed. For the most part, the lower purchase price foreclosures have dropped significantly over the last couple of years. This is most likely because the lower price point homes owners tend to have less cash reserves. These homeowners were the first to be hit. Now we are seeing folks in the higher price range starting to move towards foreclosure. 

So I am afraid I don't have great news. We are still seeing a steady flow of foreclosure filings in the Elk Grove area. The good news is our market seems to have settled down for now.

I will keep you posted on what is going on in the Elk Grove Real Estate Market! Just subscribe to my blog and you can receive new blog posts via email!

If you are looking to buy or sell an Elk Grove home I would love to apply for the job!

Check out our newest episode of Good Day Elk Grove!

Want to know what is going on in Elk Grove, Ca.? Check out our latest episode of Good Day Elk Grove and get the run down on what's going on around town! 

We are sharing our plans for Valentine's Day around town and video from the Project Ride Crab Feed!

Rico Rivera from Old Republic Home Warranty is reporting on a new requirement in 2010 to upgrade certain heating and air conditioning units in our area. If you have an older unit or are currently looking to buy a home in the Elk Grove area, you will want to watch our latest episode of Good Day Elk Grove. 

You can find Good Day Elk Grove on Facebook, Twitter, and www.GoodDayElkGrove.com!!!

Here is Rico Rivera's contact information:

Old Republic Home Warranty
Rico Rivera
(916) 254-8448
ricor@orhp.com
www.orhp.com 
 For quality repair and replacement of covered home systems and appliances, you've come to the right place! We provide coverage for your Plumbing, Electrical and Heating and Air Conditioning systems and kitchen appliances. In addition, optional coverage choices can be purchased to ‘custom fit' the Plan to the unique needs of your home.

If you know anyone who needs to be pre-approved for a home in Elk Grove, please have them give us a call at (916) 687-6868 or send an email to info@superiorloanteam.com !

 Here is what happened this week in Elk Grove, CA Real Estate Market:

95624 - The median list price in ELK GROVE, CA 95624 this week is $239,000. The 329 properties (single family homes) have been on the market for an average of 156 days.

The median house size is 2045 sq ft.
The most expensive listing is $4,350,000.
The least expensive listing is $94,900.

95757 - The median list price in ELK GROVE, CA 95757 this week is $261,667. The 297 properties have been on the market for an average of 150 days.

The median house size is 2473 sq ft.
The most expensive listing is $1,390,000
The least expensive listing is $139,500.

95758 - The median list price in ELK GROVE, CA 95758 this week is $222,097. The 300 properties have been on the market for an average of 150 days.

The median house size is 1741 sq ft.
The most expensive listing is $829,888.
The least expensive listing is $117,500.

Here is a chart the shows what our median price in all of the Elk Grove zip codes has done since 2007!

There are charts for the last 60 days for all 3 Elk Grove zip codes.

Want to get the full 10 page report on the Elk Grove Real Estate Market? Sign up now!

Want to learn more about the Elk Grove Real Estate Market? Check out our show Good Day Elk Grove >>

Here is what happened this week in Elk Grove, CA Real Estate Market:

95624 - The median list price in ELK GROVE, CA95624 this week is $249,000. The 316 properties(single family homes) have been on the market for an average of 128 days.

The median house size is 2144 sq ft.
The most expensive listing is $4,350,000.
The least expensive listing is $94,900.

95757 - The median list price in ELK GROVE, CA 95757 this week is $260,525. The 311 properties have been on the market for an average of 133 days.

The median house size is 2539 sq ft.
The most expensive listing is $1,390,000
The least expensive listing is $130,500.

95758 - The median list price in ELK GROVE, CA 95758 this week is $199,900. The 308 properties have been on the market for an average of 126 days.

The median house size is 1726 sq ft.
The most expensive listing is $829,000.
The least expensive listing is $120,000.

Here is a chart the shows what our median price in all of the Elk Grove zip codes has done since 2007!

There are charts for the last 60 days for all 3 Elk Grove zip codes.

Want to get the full 10 page report on the Elk Grove Real Estate Market? Sign up now!

Want to learn more about the Elk Grove Real Estate Market? Check out our show Good Day Elk Grove >>

Wonder what is going on with the Elk Grove Real Estate Market? Check out our first edition of Good Day Elk Grove!

Learn what is going on with our local market from top selling Realtors and Mortgage Planners who specialize in the Elk Grove area!

We are in a sweet spot right now... LOW interest rates - ROCK BOTTOM prices - TAX CREDIT for First Time Home Buyers AND Move-up Buyers! 

Find out how you can benefit!

We are excited about our new show and would love to your feedback!