How long do you forsee the low inventory in Elk Grove? I know it helps prices to go up.

Asked by kennytheb, Elk Grove Orchards, Elk Grove, CA Wed Nov 14, 2012

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Mark Forster, Agent, Elk Grove, CA
Wed Nov 14, 2012
Just went to a seminar today with a major bank and three top HUD, Fannie Mae & Freddie Mac agents there. HUD after the first of the year is going to be releasing a load of inventory out on the market. Yes prices are great now because there is no inventory. But that could change again. Are you looking to buy or sell?
1 vote
Ron Thomas, Agent, Fresno, CA
Thu Dec 6, 2012
The Real Estate Market is NOT like the cell phone market;
Real Estate is a long term investment.
Quit thinking that it will boom or bust by next Tuesday.
0 votes
Ernest Math…, Agent, Wilton, CA
Thu Dec 6, 2012
As long aa the inventory of new homes is down so will be the inventory of resale homes.
0 votes
James Tan, Agent, elk grove, CA
Wed Nov 14, 2012
On the supply side, I believe the distressed inventory should remain low, because:
a. Institutional Investors are buying at trustee sale and rent these properties out
b. FNMA is doing bulk sale to investors (outside of mls)
c. Banks are not in a hurry to foreclose
d. Since prices are going up, upside down property owners are more reluctant to let go, (if the under water portion is not significant). Instead, they modify or refi.
e. FNMA rehabs reo's before resale and try to keep prices high.
There are more regular sales, but that should not keep prices down.
HUD has released more inventory, but these properties can only be bought by owner occupants for the first 30 days, so it should not have a large impact.

On the demand side, we see a come back of the previously foreclosed buyers (boomerang buyers).
Bay Area and other investors are racing to buy, since they are afraid they might miss the boat.
Economy is improving, so new households are now starting to buy again.
0 votes
Sue Archer R…, Agent, Palm Harbor, FL
Wed Nov 14, 2012
You can almost delineate the market against the type of listing that is on the market. (Notice I say almost). If an equity sale (meaning the seller is an actual homeowner who expects to receive some payment at the end of a sale) is released with a great marketing plan, they can maximize the price received on the market.

Emotion can still play with a buyer in how much they're willing to pay. If a buyer has to wait for a short sale, or consider a bank owned home that is 'bare', with no homey feel and needs paint, then expect that it could affect the price that a buyer is willing to offer.

The typical economic factor of supply and demand is in the favor of the seller right now with supply being so low. But in addition to that, if the right marketing plan is put in place you can improve the price even further. It's a good time to sell. If, with the current economic climate, that the interest rates go up, you will see the prices start to falter and possibly decrease. So your window of opportunity is now.
0 votes
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