Rising real estate prices may have dampened home buyer’s hopes in Folsom. That’s right – you read that right. I did say “rising home prices.” But since there are still 106 short sales on the market that are getting absorbed at the slow rate of 8 short sales a month on average we can rein in some enthusiasm (I know, Folsom dwellers, I know!) and call it “prices that are not falling.”

Because they haven’t. In fact, we are seeing a year over year increase in home prices, not to mention month over month. The average sales price is up 0.8% year over year from $405,875 to $408,950. I know, it seems like a small amount until you see what it was last month: $357,374! The average price per square foot is also higher than last month’s $180.23. It is currently $188.46. This number, while 6.2% lower than last year gives Folsom dwellers some hope that their local real estate market might be on the road to recovery. Median sales price has also recovered 0.4% year over year to rest at $400,000 from $398,250.

But wait, I did mention that sales are down, didn’t I? Foreclosure sales are down 29% and short sales are down 25% year over year. Non-distressed properties are up 35% in sales. Non-distressed homes were also the majority of homes sold in Folsom this month – 63% of total sales, which is a reversal of last February’s sales chart which showed the majority of sold homes as distressed properties. Overall unit volume remains almost unchanged year over year. 49 homes sold this February as compared with 48 last February.

Inventory is at 4.8 months based on the last year of sales and 5.9 months based on the last 6 months of sales.

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