BANK OWNED (Foreclosure /REO) HOME SALES DATA FOR FOLSOM, CA – JULY 2013
This is the latest monthly report of our over five-year study of bank owned (Foreclosure/REO) home sales in Folsom, CA. This report covers July of 2013. In order to simplify the post for the reader, we will only use the term “foreclosure” when referring to this category of home.
If you would like to see all of the foreclosure homes available for sale in Folsom, select this link. To view the available foreclosure homes you will have to select the box next to “are REO/Bank Owned” under the “Including the above criteria, only show me properties that:” section. Then scroll down and select the Folsom box half way down on the left side of the page and finally select the Search Now button at the bottom of the page.
There were only two foreclosure homes sold in Folsom, down from three the previous month. There were a total of 92 homes sold in Folsom this month. With such a small sample any statistical evaluation is of questionable value. We make this report available for readers interested in monitoring the trends.
The average days-on-market decreased from 29 days in June to 25 in July. Note that NONE of the foreclosure homes that sold did so in two weeks or less, an unusual situation for any month in our study.
The two foreclosure homes that sold represent only 2.2% of all homes sold in Folsom. That is the smallest foreclosure segment since we started publishing this report. This statistic has been trending downward in the past year. The small number of available foreclosure homes is making its impact.
The available inventory of foreclosure homes in Folsom spiked to a 2.5-month supply, up from a 1.5-month supply the previous month. That is the highest inventory level in the last fifteen months.
(Note that the absorption rate is calculated by dividing the number of available homes by the number of homes that sold in the most recent month. So, with only two homes sold a 2.5-month supply means that there are a total of five foreclosure homes available: not exactly a glut on the market.)
The inventory for ALL homes available also increased to a 1.4-month supply, up from a 1.1-month supply the previous month. This too is the highest inventory level in the past fifteen months. One might think that prices have increased to a level where sellers are no longer reluctant to put their homes on the market.
Pundits tell us that a 6.0-month supply is neutral market, so Folsom remains a strong seller’s market for both foreclosure homes and all other homes on the market.
The average cost-per-square-foot for foreclosure homes was $ 211 in July, the highest by far in the recent past. Although we can not attach much importance to that figure with only two homes in our sample
The average cost-per-square-foot for ALL homes sold in Folsom in July was $ 196 for the third month in a row.
When we make the same comparison for ALL homes that sold in Folsom, the cost-per-square-foot in July of 2012 was $165. This month’s figure of $196 represents a 15.8% increase. This much larger statistical sample makes this number statistically significant.
The overall sales price for foreclosure homes was 94.3% of the final asking price. Neither of the buyers paid the asking price of more for their foreclosure home.
There was one concessions reported this month. One seller provided the buyers a $7,500 credit to cover buyer closing costs. That credit was not included in the reported sales price. Buyer credits, usually rare, have become more common in the past nine months. Perhaps the asset managers are becoming more realistic about market prices.
If you have any questions about purchasing a home in Folsom, a Folsom Foreclosure, or anywhere in the area, feel free to give us a call (916) 337-0658.
See the data chart below for BANK OWNED (Foreclosure /REO) HOME SALES DATA FOR FOLSOM, CA – JULY 2012
The data follows:
Blog originally published at: www.BuyYourVilla.com/blog
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