This post continues my study of REO (Bank Owned) home sales in El Dorado Hills and Folsom, CA. for December 2008.
The number of REO properties sold in the subject area in December was 32, one less than in November.
The average days on market dropped significantly to 29, down from 49 the previous month. One home in El Dorado Hills sold after being on the market for 219 days. That was the only property sold that had been on the market for more than 100 days. The old inventory is being cleared out and there are less REO properties on the market for a long time, even when the condition as an important issue.
A full 46.9% of the REO homes that sold in December sold in less than 14 days, up from previous months. Also 24.3% of the REO homes sold in less than 7 days. The REO market has really heated up.
Of the 89 homes that sold in the area in December, 32, or 36% were REO properties. This percentage is up from 35.50% in November.
Of the REO properties sold, 28.2% sold for the asking price or more, one for 150.71% of the final asking price. This is the largest premium we have seen since we have been monitoring these REO sales. The best deal was a home on the market for 19 days that sold for 85.3% of the final asking price. The banks are not dropping their prices on most of these REO properties.
The average cost per square foot for all homes in the area sold in December dropped slightly to $ 182.00. The average cost per square foot for REO properties increased to $ 169.00, up two dollars from December. That still equates to nearly an 8% reduction in cost for those who purchased REO properties. Note that these figures are considerably lower than they were in December of 2007, when the cost per square foot for all properties sold was $ 212 and for REO properties at $ 194. This represents an overall drop of almost 14%.
REO properties continue to be a good buy. However, one must still factor in condition issues and the associated repair costs before making an offer.
Specific Data follows:
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