BANK OWNED (Foreclosure/REO) HOME SALES DATA FOR FOLSOM, CA – APRIL 2012
This is the latest monthly report of our more than four-year study of bank owned (Foreclosure/REO) home sales in Folsom, CA. This report covers April of 2012.
There were 10 Bank Owned (Foreclosure/REO) homes sold in Folsom this month, exactly the same number as in the previous month.
The average days-on-market decreased from 36 the previous month to 30 in April. None of the homes had been on the market for over 100 days, and only 20% of the homes that sold were on the market for two weeks or less. That is a much smaller segment than normal.
The 10 Bank Owned (Foreclosure/REO) homes that sold represent only 12% of all homes sold in Folsom this month. The very low bank owned home inventory is the reason this segment of the market is so low and it seems to be shrinking.
The available inventory of bank owned (Foreclosure/REO) homes in Folsom decreased to a 1.0-month supply, down from a 1.1-month supply the previous month. That inventory level has not exceeded a two-month supply for over a year. The inventory for bank owned homes in Folsom peaked at a 2.8-month supply in January 2011, and has not reached that level since.
The available inventory for ALL homes available remained at a 1.1-month supply for the second month in a row. We have not had an inventory level of more than a three-month supply since February of 2011. Pundits tell us that a 6-month supply is neutral market, so Folsom remains a strong seller’s market for both bank owned homes and all other homes on the market.
The Folsom market reflects what is happening in the rest of California and the western U.S. Inventory levels are very low. This factor is going to have an impact on housing prices in the very near future.
The average cost-per-square-foot for bank owned (Foreclosure/REO) homes was $ 131 in April, down from $ 137 in March. The average cost-per-square-foot for ALL homes sold in Folsom in April was $ 153, the same as in the previous month. It has been moving within a narrow range for the past year and has not fluctuated more than $ 3 since July of 2011, when it reached
$ 161.
The overall sales price for REO homes was 98.8% of the final asking price and 96.2% of the original asking price. In addition, 40% of the buyers paid the asking price, or more, for their Folsom bank owned (Foreclosure/REO) home in April.
Based on the cost-per-square-foot, bank owned homebuyers saved twenty-two dollars per foot on their bank owned home compared to the cost for all homes sold in Folsom this month. When applied to a 2,500 square foot home, that represents a savings of $55,000: a tidy sum
Given the overall data, it is obvious that homeowners who do not have to sell are keeping their homes, rather than accepting current market value offers. As prices rise, more homes will be placed on the market.
If you have any questions about purchasing a home in Folsom, a Folsom Foreclosure, or an REO anywhere in the area, feel free to give us a call
(916) 337-0658.
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