Folsom CA Market Update
The Folsom CA real estate market saw some significant changes in August. Folsom has seen a fairly steady decline in the number of homes on the market since the peak in October 2010. This is reflected in the numbers of buyers that are having trouble finding a home to purchase in Folsom – multiple offers are common under $350,000. We have had two sets of frustrated buyers come to us just this last week asking for help getting them into a Folsom home.
Folsom real estate has also seen a decline in average price per square foot – the average has dropped 6.8% in the last year, although we have seen the rate of decline slow in recent months.
The median sales price rose from $305,000 in July to $312,000 in August, but is still 9.3% lower than the Folsom median sales price from August 2010.
Foreclosures in Folsom are hard to come by – nearly every foreclosure that comes on the market sells almost immediately. The inventory of Folsom REO property has been steadily declining since December 2010. With the recent news of large increases in foreclosure activity by the major lenders we expect to see the inventory increase over the coming months.
Short Sale inventory in Folsom has also been declining except for a bump in August. The good news here is that buyer demand is still strong and even with declining inventory we are continuing to see an increase in successful short sales.
“In August, Folsom short sales have increased 65% over 2010. Buyer demand remains strong not only in Folsom, but throughout the Sacramento region” says Jeff Werolin Vice President for Morris Williams Realty in California. “In every category – equity sales, short sales and REO sales we are seeing stronger activity. Lower inventories of homes for sale, incredibly low interest rates and affordable prices are driving our current market.”
