The number of homes for sale in Folsom fell to just 69 units in December, the lowest total 3 years.
December is typically one of the slowest months of the year, with buyers distracted by the holidays, and with shorter, colder, and usually wetter days. In this case, however, while inventory dropped, sales actually rose. For the quarter, the number of available units fell to 312, down from 429 for the same period last year, while sales were up 27% (253 units vs 208).
Winter sale prices can drop as well, with only the most serious sellers on the market at that time. The average price per square foot for homes sold in Folsom in December was $216, down from $223 in November.
The new year has started with a slight bump in inventory, and today there are 76 homes for sale in Folsom, compared with 128 at this time last year.
Advice to buyers would be to be ready or patient, or both. If you are buying a home this year, make sure you know what you want, have an underwritten pre-approval in hand, and proof of funds for down payment before you start looking. Priced correctly, homes don't sit on the market for long, and you don't want to fall in love with a house and find yourself unprepared to make an offer.
This doesn't mean you need to rush out and buy the first thing you see. Inventory typically increases steadily heading into spring, usually peaking in late summer. If you are patient, you should be able to find more to choose from.
If you or someone you know are thinking of selling, this may be an opportunity to get a jump on the competition. Buyers are out there looking, but they don't have many choices right now.
What we don't know is what interest rates will be as the year goes on, nor whether we'll see the typical inventory increases. Experts always seem to disagree, with some predicting rate increases forcing price drops and a rise inventory, while others say the demand for housing will continue, and expect prices to rise but still remain affordable.
As always, your thoughts and perspective are always appreciated. Your guess is as good as mine.