Folsom Real Estate Market
Year on year real estate prices in Folsom were down only about half as much as Sacramento County as whole in April of 2008, with the upshot that Folsom has yet to see the turnaround in unit volume that other areas have experienced. In addition, Folsom has fewer foreclosures than Sacramento County as a whole. In all these respects, Folsom more nearly resembles nearby El Dorado and Placer Counties (both of which it borders).
The average home sold for $426,840 in Folsom in April, down 13.4% from last April’s average of $492,821. Sold price per square foot fell 17.7% during this time to rest at 196.16 this April, while the median price dropped only 7.4%, from $455,000 in April of 2007 to $421,250 in April of 2008.
The relatively low price declines has their roots in the relatively low foreclosure numbers. Only 28.3% of homes in active inventory are short sales or foreclosures. REOs accounted for 17.2% of sales in April, while short sales made up 8.6% of sales (though they account for 22.7% of inventory).
Unit volume fell 31% from April to April, so again, we’ve yet to see the demand pick up due to sharp price drops as we’re seeing in other areas. Nevertheless, demand is strong enough that inventory is quite low in Folsom. At 5.23 months, it’s officially in the “buyer’s market” category. Days on market (49) and the low expired to sold ratio (41.4%) also are strong indicators of a market that’s fundamentally sound, though down from last year.
