Keep an Eye on December 1st, 2009:  The $8,000 tax credit currently available to First Time Home Buyers (defined as those who have not owned a home for the past three years) expires on December 1st, 2009.  Because it usually takes around 45 days to close escrow on a house after a contract is signed, buyers have very little time left to act.  As of Tuesday, Sept. 15, there are only 76 days left before the credit ends.   There has been a recent push, to get Congress to either extend the program, or create a new program that would be available to all home buyers.  The National Association of Realtors points out the current program brought 1.2 million new buyers into the market.  The NAR's concern is, the recent buying frenzy will dry up once the tax credit expires.  Analysts argue that without the incentive, the pressure on homebuyers to act quickly will vanish, and the nascent housing recovery could slump.  As you will see below, August sales dropped off considerably in Folsom and El Dorado Hills.

Deal of the Month:  I am selling a home at 120 Winterstein Drive in Folsom.  1,467 square feet, 3 beds, 2 baths, pool, 3-car garage.  Needs some work, but a great starter home.  Asking $268,998.  OPEN HOUSE Sunday 9/20/09 from Noon to 4pm. Call me for details!

Regional Snapshot:  The good news:  The number of homes for sale in Sacramento County dropped again to 5,469 units.  This is 29% below the peak in October of 2008.  The number of bank owned home sales fell for the 5th consecutive month to 774 units, 49% below the peak in October of 2008.  The average sales price rose for the 5th consecutive month.  The bad news:  For the first time in 2009, the number of home sales dropped in Sacramento County.  From July to August, the sales fell by 12% from 1,854 units to 1,636 units.  Hopefully this has to do with the seasonality of the housing market and the numbers will rebound in the coming months.  Folsom and El Dorado Hills were not immune to the drop in sales with both experiencing a big drop in sales during August.

Folsom:  It appears the local focus shifted from home buying to getting the kids back into school and to soccer practice during August.  Although the average dollars per square foot of sold homes rebounded from $164 in July, back up to $185 in August, the number of sales dropped by 24% to 53 homes and the average sales price slipped to $386,000.   Of the 53 home sales, 12 were bank owned and 8 were short sales, making 38% of total sales distressed homes.