Zillow forecasts price decrease for Elk Grove real estate
UPDATED 7 pm September 14
After several years of double-digit price increases and recent monthly forecasts showing the trend to continue, Zillow.com expects falling pries in Elk Grove over the next 12 months. That forecast was made in Zillow’s most recent monthly report for the city’s three zip codes.
According to their recent report, prices will drop 2.1-percent. Current values in 95624 as of this week are $671,347 compared to $580,748 one year ago.
As recently as mid-August, price increases in 95757 were forecasted at 14.7 percent and 14.9 in 95624.
Although California is experiencing a housing shortage, especially for affordable units, the decrease is attributed to rising interest rates. Current 30-year mortgage rates are over six percent, which is about double from January.
With the August inflation report showing an eight percent increase, the Federal Reserve is expected to increase the prime rate by three-quarters of a percent at its next meeting. That hike will push mortgage rates higher, resulting in further market cooling.
One signal of the cooling real estate market is listing price decreases. According to CNBC, one in five residential listings nationally dropped prices in August.
Anecdotally, there are also more open house showings in Elk Grove – a practice absent during periods of rapid sales.
UPDATED – Minutes after this story was first posted, Zillow released another report this afternoon showing prices would drop 2.1-percent. Zillow’s report for September 11 reflected a forecasted 0.1 percent annual appreciation.
