Posts Tagged ‘Folsom’

Folsom Real Estate Market

Our cavalcade of October market data continues now as we look at the real estate market for Folsom for October 2007.  The big story for Folsom in October was the huge difference in unit volume from October 2006 to October 2007.  Last year 84 units sold in Folsom, while this year the number was only 46, a 45.2% drop in volume.

The average home sold in Folsom in October for $448,433, down 13.9% from last year’s average of $520,638.  On average, however, this year’s home was somewhat smaller than last year.  As a result, sold price per square foot dropped less dramatically.  Last October it was $241.60, whereas this October it’s $217.16, a 10.1% drop.  The median selling price of a home in Folsom fell 8.8% during this period, from $465,424 last October to $424,500 this October.

The number of foreclosures is fairly low in Folsom compared to other areas in Sacramento County, with five bank owned properties selling in October and making up 10.9% of the sales.  In active inventory, there are 28 bank owned properties out of a total of 422 homes, or 6.6%.

If unit volume was down in October (and yes, it was), you can’t prove this by looking at inventory numbers.  Inventory is 6.2 months in Folsom, which in the seller’s market side of the ledger, but only barely.

Folsom Real Estate Market

Looking at the real estate market for Folsom in August, we find a market that’s somewhat stronger in many respects than Sacramento County as a whole. I expect to see Folsom being one of the first Sacramento County markets to recover from the downturn we’re currently experiencing, but of course, that’s a “foreward looking statement”, which is how Wall Street says “guess.”

On to the numbers. Sixty homes sold in Folsom in August, down 13% from last year’s volume of 69 sold homes. The average home sold in Folsom for $478,254, down some 7.1% from last year’s average of $514,805. This year’s home being slightly bigger than last year, the average sold price per square foot in Folsom dropped marginally more, 8.5%, from $248.10 last year to $227.09 this year. The median price in Folsom dropped 11.7% from August to August, from $497,500 last year to $439,450 last year.

Compared to Sacramento County as a whole, Folsom sellers are competing with a fairly low percentage of bank owned homes. 6.7% of the homes that sold in August of 2007 were bank owned (REO), compared with 0% (no bank owned sold) in August of 2006. In inventory, bank owned homes make up 5.3% of the unsold homes, with 23 REOs to a total of 436 active homes for sale. Inventory is relatively low at just under six months.