FOLSOM, CA HOME SALES DATA – AUGUST 2012

FOLSOM, CA HOME SALES DATA – AUGUST 2012

The purpose of this post is to provide those interested in the Folsom, CA housing market data about that market. The data presented covers August 2012, and the preceding fourteen months.

The first chart lists the cost-per-square-foot for all homes sold in Folsom by month.

Although there is a very slight fluctuation from month to month, the reader can see that there is a slight trend upward over the past year. The August number is the second highest it has been in fifteen months and only one dollar off the peak. The pundits advise that we hit the bottom of the market in California in March of 2012. The lowest cost –per-square-foot in Folsom in the past fifteen months was in February.
Those potential buyers who decided to remain on the fence, “until prices hit bottom” missed the boat, but only by a few months. The housing shortage is going to result in price increases. The new challenge will be to find any home that they can buy. Select this link if you wish to see all homes available for sale in Folsom right now. (This is a two step process: Scroll down the the Folsom box half way down on the left side of the page and then select the search button at the bottom of the page)



The second chart shows the number of months of inventory available (the number of homes for sale divided by the number of homes sold each month). The inventory level varies from month to month but the overall trend is obviously downward. The 0.7-month supply in May was the lowest on record and the .9-month supply in August is the second lowest on record.

As prices start to increase, more sellers are entering the market. Let’s hope that this trend continues. Pundits tell us that a six-month inventory is a neutral market. Therefore, we can see that the Folsom market has been a seller’s market during the entire period covered by these charts.

The media has finally recognized that the shortage is a fact.

Over a year ago, we posted an article warning about the pending housing shortage. Obviously, we were correct. All you have to do is ask those actively looking for a home.

The demand will result in price increases and with those increases; more homeowners may 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.



The third chart shows the average days on market, the length of time it takes the average house to sell. Note that although this number bounces around, the trend is for faster sales. Also, note that the average home sold for 98% of the asking price in August.



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.

To use the very best Internet property search tool available go to www.BouYourVilla.com

This post originally published at www.BuyYourVilla.com/blog