This is the sixth in a series of Blogs in my quest to determine if REO properties are the great bargain that the public perceives them to be. The subject data is for REO properties in Folsom and El Dorado Hills, CA during January 2008.
The number of REO properties sold during January 2008 was lower than the number sold in December. The 18 homes sold represent 33.96% of all homes sold in the area for the month.
Those homes that were on the market longest tended to sell for a smaller percentage of the original asking price, but not consistently any lower than the final asking price than in any of the previous months for this study.
The cost per square foot of REO homes sold in January was 91.2% of the cost per square foot of all homes sold. That is very similar to the 91.5% in December.
The trends are becoming more evident as the study progresses. The most consistent trend is that the number of REO homes sold in the area in increasing as a percentage of the total homes sold over time. (6.7% in August of 2007 to almost 40% in January. The second consistent factor is that the REO homes have sold for an average of nearly 10% less per square foot than the average cost per square foot for all of the homes that sold for the same period. One would expect that the condition of the homes was a major factor, however, some of the REO homes were in move-in condition.
It is obvious that REO home sales are a consistent factor in our market and will continue to be so for some time. They are going to have an impact on the sale of non-REO properties now and in the future.
Are REO properties the bargain perceived by the public? You must decide for yourself.
Folsom/El Dorado Hills Sold REO Properties January 2009
Original Listing Price at Sold Price SP as % of SP as % of
DOM Listing Price Time of Offer Sold Price Original Price Final Price
1 Fol 42 $342,900.00 $324,900.00 $319,000.00 93.03% 98.18%
2 Fol 6 $339,900.00 $339,900.00 $341,500.00 100.47% 100.47%
3 Fol 17 $349,900.00 $349,900.00 $348,500.00 99.60% 99.60%
4 EDH 75 $449,900.00 $424,900.00 $385,000.00 85.57% 90.61%
5 EDH 105 $462,900.00 $429,900.00 $410,000.00 88.57% 95.37%
6 EDH 124 $469,900.00 $407,900.00 $418,000.00 88.96% 102.48%
7 EDH 0 $429,900.00 $429,900.00 $430,000.00 100.02% 100.02%
8 Fol 21 $422,500.00 $422,500.00 $435,000.00 102.96% 102.96%
9 EDH 10 $448,900.00 $448,900.00 $435,000.00 96.90% 96.90%
10 Fol 44 $515,900.00 $464,500.00 $469,000.00 90.91% 100.97%
11 Fol 8 $499,900.00 $499,900.00 $499,900.00 100.00% 100.00%
12 EDH 50 $569,900.00 $519,900.00 $515,000.00 90.37% 99.06%
13 Fol 12 $539,900.00 $539,900.00 $517,000.00 95.76% 95.76%
14 EDH 5 $513,000.00 $513,000.00 $530,000.00 103.31% 103.31%
15 Fol 191 $639,900.00 $579,900.00 $540,000.00 84.39% 93.12%
16 EDH 90 $593,900.00 $571,900.00 $561,500.00 94.54% 98.18%
17 EDH 175 $798,000.00 $700,000.00 $627,000.00 78.57% 89.57%
18 Fol 43 $805,500.00 $669,000.00 $650,000.00 80.70% 97.16%
Averages 57 93.0% 98.0%
REO Sold Cost Per Square Foot: $188.00
Total Sold Cost Per Square Foot: $206.00
Total Number of REO Homes Sold in November for area: 18 (33.96% of Total)
Total Number of Homes Sold in November for the same area: 53
Comments(1)