July 2008 - Folsom, CA - Residential Real Estate Update ( includes REO's & Short Sales )

As of today's date, according to the Metrolist MLS system, Folsom, CA, currently has 260 single-family homes listed for sale (this excludes duplexes, condos, commercial real estate, etc.).   During the month of July, 2008, there were 79 homes that sold (closed escrow).  At this rate of home sales, it would suggest there is about a 4 month supply of homes available.  It is commonly agreed that when inventory of homes for sale drops below a 5 month supply of homes, it is a "seller's market."  

Has Folsom, CA really turned the corner and become a Seller's Market amidst all of the doom-n-gloom being reported by the media in California?  Seller's markets usually signal rising sales prices and have very short days-on-the-market for the active listings.  The answer to the above question is: The housing supply is very tight, the demand is strong and median home prices have fallen year-over-year from $475,000 in July 2007 to $415,000 in 2008 (a 12% reduction in median home values), suggesting it is still a buyer's market that could turn on a dime when the bank owned homes dwindle, prices stabilize and in turn, the number of short sales drop off.

Of the 260 homes Actively for Sale on the market in Folsom, CA, 19 are REO's (Real Estate Owned by banks) that the banks took ownership of through foreclosure.  This equates to 7.30% of the active listings being REO's.  70 of the active listings are Short-Sales (these are homes that are being offered for sale at an amount that is less than what is owed on the home and the seller wants the bank to allow the lower priced sale to close escrow and satisfy the total debt owed by the seller to the bank.).  This equates to nearly 27% of the active listings being Short-Sales.

Of the 79 homes that closed escrow and sold in July, 2008, 16 were bank owned homes (20.25%) and 7 were Short-Sales (almost 9%).  The combined total of REO's and Short-Sales, when compared to homes that closed escrow and sold in July, 2008, was about 29%.  During this time period, 56 home sales were of the standard resale variety.  

If you are interested in reading about the Residential Real Estate Market and the impact of Bank Owned Homes in Sacramento County and Folsom, CA please read the following series of articles: Pulling Back the Curtain on REO's in Sacramento County and Folsom, CA.

If you are a home buyer and looking to buy a home in Folsom, now is a great time to buy your next home.  With inventories dwindling, regardless of what the national media is saying, the great deals in Folsom may not last much longer.  If you are a home seller, success with selling your home may be right around the corner, but only if you hire an experienced Realtor who knows how to implement the proper pricing and marketing strategies while harnessing a strong online presence to capture those buyers who are looking to purchase a home in Folsom, CA.

SEE AN UPDATED LIST: Folsom, CA Bank Owned Homes