EL DORADO HILLS, CA HOME SALES DATA – JAN 2010

EL DORADO HILLS, CA HOME SALES DATA – JAN 2010

The purpose of this post is to provide those interested in the El Dorado Hills, CA housing market data about that market. The first chart lists the cost-per-square-foot for all homes sold in El Dorado Hills by month for the past fifteen months.

Although there is a slight fluctuation from month to month, the viewer can see that there is not a downward trend. Nor have prices risen over the past fifteen months. We submit that the market is bumping along at the much-touted “bottom.” Those potential buyers who decided to remain on the fence, “until prices hit bottom” no longer have a reason to wait.

The second chart shows the level of inventory, the number of months of inventory available (the number of homes for sale divided by the number of homes sold each month). Pundits tell us that a six-month inventory is a neutral market. Therefore, we can see that the Folsom market is, and has been for some time, a seller’s market.

Those who listen to the media should remember that disaster sells soap, so media reporting, by necessity, emphasizes the negative aspects of the market. Although there are segments of the housing market that are in trouble, Folsom is NOT one of them.

Over a year ago, we posted an article warning about the pending housing shortage. We continue to stand behind that prediction. All you have to do is ask those actively looking for a home.

It is going to get worse. The demand will result in price increases and with those increases; more homeowners will put their homes on the market. Unfortunately, without any new home construction in the past five years or more, we will still be short of inventory.


If you would like to see this data for other cities and towns in our area, feel free to contact us at (916)337-0658 or e-mail Mike@BuyYourVilla.com.

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