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Can We Now Call It A Seller's Market? Folsom Housing Market Snapsh


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#1 Steve Heard

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Posted 12 April 2016 - 08:49 AM

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The first quarter numbers are in, and for the Folsom housing market, there's good news and bad, depending on your perspective.

Although both closed and pending sales were up slightly compared to the same period last year, the real story is in the lack of inventory and the effect it has on buyers.

 

There were 373 Folsom homes listed for sale in the fist quarter of 2015, vs 279 this year. This lack of inventory is causing buyers to act, and in many cases they are acting quickly. Agents are reporting multiple offers, and with only one winner for each, there's a growing trail of disappointed buyers, and some are growing desperate.

 

Of the 115 listings that went pending in March, 57 were on the market for less than a week. They are selling fast, and for top dollar (if priced right in the first place).

 

The sold-in-a-week-or-less homes went for an average about 101% of the listed price.

 

Speaking of prices the average listing price for those fast sellers was $457K, while the average list price for the rest was $512K.  Not much has changed there, as the average sale price has been bouncing between $445,000 and $465,000 for about a year. For that price you can generally get a home of about 2000 sq ft.

 

With homes selling so fast, does that make it a seller's market? Many of the so-called experts would call it a seller's market if we have less than 3 months of inventory. At the current rate of sales, we have less than a one-month supply.

 

Some would consider it a seller's market if buyers are paying more than asking price. That's happening to some extent, but not like the Bay Area, where a homes are going for 10 to 20% above listed price.

 

Others consider a seller's market one in which homes are selling in less than 30 days. As mentioned before, 57 went pending in less than a week during the month of March.

 

That doesn't mean that you can just plant a sign in the lawn and immediately get multiple offers over asking.

Looking at the current Folsom homes for sale, 21 have been on the market for 2 months or more. It's doubtful they'll be getting those multiple offers over asking any time soon.

 

So, I guess the answer is, it's a seller's market if the seller prices it realistically.

 

Before you list your home for sale, take a good look at what's out there, what's been selling, and be realistic about your expectations.

 

If you are a buyer, be calm, but be ready. Get yourself a full pre-approval, a good agent, and a clear understanding of the market. Compare the homes you're interested in with what else is out there and what's been selling. If you see that homes are selling quickly in just a few days, at or above asking, don't think you can be the first in line, offer less and scoop the market.

 

Smart sellers will give it a couple of days exposure before settling on an offer. Make yours a good one if you want to get the seller's attention.

 

From my own personal experience I can tell you that of the 10 homes I've put under contract in the first quarter, 9 were on the market less than a week, and the other, the over priced on, 115 days.


Steve Heard

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#2 Homerunner

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Posted 13 April 2016 - 09:10 AM

Would be interested in knowing what percentage of these sales are investors and rentals.  Especially from bay area and foreign investors.  Folsom, in general, is showing a serious lack of pride in resident ownership, just by touring the neighborhoods.  Lots of run down yards and lack of maintenance, which is sad for a relatively new community.  Of course, the city also plays a huge part in this in setting the standard  They've shown little to no interest in maintaining streetscapes, landscapes and road maintenance, be it in the neighborhoods or commercial zones.  Developers leave new projects/subdivisions, things look great for a short time, the city takes over (more like doesn't maintain anything at all) and it all goes to hell. And if the city doesn't care, what incentive is there for the commercial property owners or residents?  In fact, Bidwell as the main shopping district is looking downright shabby. Love the unmaintained medians and those piles of bark dumped all along Bidwell that never go away.  Also can't imagine these are all transplants, because jobs are seriously lacking here.  If you're lucky enough to telecommute, that's great, but most are commuting long distances out of the county.  No talks about a sustainable community - Sarah Winchester keeps echoing just "keep building"..... more and more houses,



#3 Steve Heard

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Posted 13 April 2016 - 04:51 PM

Would be interested in knowing what percentage of these sales are investors and rentals.  Especially from bay area and foreign investors.  Folsom, in general, is showing a serious lack of pride in resident ownership, just by touring the neighborhoods.  Lots of run down yards and lack of maintenance, which is sad for a relatively new community.  Of course, the city also plays a huge part in this in setting the standard  They've shown little to no interest in maintaining streetscapes, landscapes and road maintenance, be it in the neighborhoods or commercial zones.  Developers leave new projects/subdivisions, things look great for a short time, the city takes over (more like doesn't maintain anything at all) and it all goes to hell. And if the city doesn't care, what incentive is there for the commercial property owners or residents?  In fact, Bidwell as the main shopping district is looking downright shabby. Love the unmaintained medians and those piles of bark dumped all along Bidwell that never go away.  Also can't imagine these are all transplants, because jobs are seriously lacking here.  If you're lucky enough to telecommute, that's great, but most are commuting long distances out of the county.  No talks about a sustainable community - Sarah Winchester keeps echoing just "keep building"..... more and more houses,

 

It can be difficult to find out the percentages, because some investors buy as owner-occupants, and occupancy status isn't reported through MLS. 

 

I can only give my opinion, based on experience and talking to buyers and other agents. The are very few investors buying Folsom these days. That's because rental-grade homes are so hard to come by at a good price. I sold a home in Broadstone to a couple buying their first investment property a few years ago. It was 3 bed, 2 bath, about 1450 sq ft. They paid $249K. I sold the same model last year for $390K. There is one now pending sale, listed at $425K. It will rent for probably $1800. Not worth it to most investors.

 

With the average sale price in the mid $400K's, many are going elsewhere.

 

I sold a nice one in the Capitol Village area of Rancho, 1700 sq ft, 3 bed, 2.5 bath, for $284K. It rents for about the same as the Broadstone house, but costs a lot less to buy. 

 

I have to disagree about the condition of homes. I am driving these streets every day, and I think that drought had a lot to do with the appearance of lawns, but overall, we have nice, clean streets and homes show pride of ownership. There are exceptions, of course. 


Steve Heard

Folsom Real Estate Specialist

Keller Williams Realty

BRE#01368503

Owner - MyFolsom.com

916 718 9577 


#4 caligirlz

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Posted 13 April 2016 - 05:49 PM

Last week I was looking at homes for sale in relationship to a different forum and people talking about various communities in Sac County. I was amazed at how many similar models to mine were on the market, and the asking prices.

 

I'm just amazed at the increasingly heavy traffic. Eventually i will have to move to a less populated area, and I'm sure I will have no trouble selling my home. In the meantime, enjoying it. I remember the naysayers asking if I has made a mistake purchasing (at the bottom of the market), as apparently they thought prices were going to crash further.



#5 Steve Heard

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Posted 14 April 2016 - 10:28 AM

 I remember the naysayers asking if I has made a mistake purchasing (at the bottom of the market), as apparently they thought prices were going to crash further.

 

That is always the case, no matter where prices are, there are people who just KNOW they are about to fall. I'm glad you took that bold step when you did. It looks like you should have about 50% equity now. 


Steve Heard

Folsom Real Estate Specialist

Keller Williams Realty

BRE#01368503

Owner - MyFolsom.com

916 718 9577 





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