BANK OWNED (REO) HOME SALES DATA FOR FOLSOM, CA – JUNE 2011

BANK OWNED (REO) HOME SALES DATA FOR FOLSOM, CA – June 2011

This is the latest monthly report of a nearly four-year study of bank owned (REO) home sales in Folsom, CA.  This report covers June 2011.

There were 23 REO homes sold in Folsom in June, a 26% increase over the previous month.

The average days on market dropped from 53 for two months in a row to 49 in June.  Two of the homes had been on the market for over 100 days and one had been on the market for 244 days, skewing this statistic slightly.  However, 22% of the homes that sold were on the market for two weeks or less.  Well-priced homes in good condition are still selling quickly.

The 23 REO homes that sold represent only 25% of all homes sold this month, on the lower end of the normal range.  REO inventory is very low.

The available inventory of REO homes in Folsom dropped to a 1.3-month supply, the lowest inventory level in the past fourteen months. The available inventory for ALL homes available declined from a 2.6-month supply the previous month to a 2-month supply in June, also the lowest inventory level in the past 14 months.  Pundits advise that a 6-month supply is a neutral market, so we are still looking at a strong seller’s market in Folsom.

The average cost-per-square-foot for REO homes was $ 142 in June, the same as in the previous month.  The average cost-per-square-foot for all homes sold in Folsom in June dropped to $ 153, down from $ 156 the previous month. 

The overall sales price for REO homes was 103.71 % of the final asking price.  In addition, a full 31% of the buyers paid the asking price, or more, for their REO homes in June.

REO buyers paid 93% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for ALL homes sold in June. When applied to a 2500 square foot home, that represents a savings of $ 22,500: a considerable savings.    

Note that the first home on the attached spreadsheet was a one bedroom, one bath home built in 1911 with a total of 653 square feet.  The asking price was $ 31,500 and a buyer decided that the true value was $ 82,000!  One would guess that an investor has major renovation plans in mind.   

If you have any questions about purchasing a Folsom REO, or an REO anywhere in the area, feel free to give us a call (916) 337-0658.

The data follows: