13 replies to this topic

[Steve Heard]

I thought you folks might be interested in the latest numbers:

Current Market:
Number of homes for sale in Folsom today: 330

Number which are REO/bank-owned: 41

Number which are short sales: 142

Number which are traditional, equity sales: 147

Number of sales pending: 67

Average price per square foot: $166 (down from $177 in May)

See the graph below. Inventory is on the rise, but that is typical for summer. If it continues to rise into the fall, it could have an effect on prices.

As of right now, with 30 year fixed rates at about 4.25%, folks are still buying, as indicated by the higher closes and the rise in pending sales.

What's it all mean? Different things to different people. The fact that nearly half the properties on the market are short-sales is a concern because it means many folks are under-water, but combined with the small number of bank-owned sales, it may indicate that banks are indeed more willing to negotiate short-sales rather than go to foreclosure...sometimes.

Also, the fact that more than half the properties on the market are traditional equity sales reconfirms that people still value Folsom as a great place to live, that we were not hit as hard as other areas in the region, and lots of folks still have equity.

What do you think?

[Dave Burrell]

Looks like sales are going up slightly, that's good to see. Although the number of houses for sale sure seems high (that's gotta be bad for our holding values) - is that the highest amount there's been for sale in for Folsom in a while or is that somewhat normal?

Are there any really killer deals? Houses for around 200k?

[Steve Heard]

It's the highest number on the market in about 2 years, but also the highest number pending, and May saw the highest number of closed sales in 2 years.


As for deals, there are 8 properties on the market in Folsom for under $200K.

Looking at surrounding communities, there are 19 in Orangevale, 22 in Fair Oaks and 60 in Rancho Cordova.

That's a lot of opportunity for first-timers, down-sizers and investors.

[Folsom Guy]

Rates are down again...what's the re-fi scene?

[Steve Heard]

Rates are down again...what's the re-fi scene?

You are correct that they are down, though a little higher than the past couple of weeks. Still, we are seeing people doing 30 year fixed in the low 4% range.

Loans aren't as cut and dry as they once were, however.

Things such as appraisals, equity, credit scores, income, and debt, the things lenders weren't worried about until the stuff hit the fan, are all very important these days, as well they should be, so results may vary.

You can assume, however, that someone with 20% equity, good credit and who can afford to make the payments can qualify for those low 4's.

[M.E.G.]

Another thing to look at when looking at the Folsom real estate market, is to look at the absorption rate. The Rate of Absorption represents how much of the current active listings (as a percentage) are being absorbed (sold) each month.

Folsom's absorption rate is down 42.8% from this time last year. Part of that is (in my opinion) because of the buyers that wanted to take advantage of the tax credits, speeding up their home buying. I also think we are adding inventory, because seller's have come to the realization, that the market is not going to go back to the prices they were in 2004 and early 2005 and they can't or do not want to wait any longer to sell their home.



M.E.G.

[Redone]

Rates are down again...what's the re-fi scene?

125 % refi is popular as you can imagine.

Any refi with no appraisal is popular ( HARP, VA streamline, FHA streamline )

Shorter terms of 20 year, 15 year, or even 10 year fixed are also popular.

[Steve Heard]

Another thing to look at when looking at the Folsom real estate market, is to look at the absorption rate. The Rate of Absorption represents how much of the current active listings (as a percentage) are being absorbed (sold) each month.

Folsom's absorption rate is down 42.8% from this time last year. Part of that is (in my opinion) because of the buyers that wanted to take advantage of the tax credits, speeding up their home buying. I also think we are adding inventory, because seller's have come to the realization, that the market is not going to go back to the prices they were in 2004 and early 2005 and they can't or do not want to wait any longer to sell their home.



M.E.G.

I think you're right about that. Just wait till the graphs come out next week. The numbers indicate another rise (I think 20%) in inventory, and although there was a similar increase by percentage, the there are a lot of homes on the market.

As usual, I think we're going to see a slow down in new listings as the year winds down.

Funny thing is, I'm getting more and more calls from buyers now. I showed property to 4 different buyers on Saturday, wrote an offer Sunday, and showing property tonight and tomorrow.

I'm thinking it's because rates and prices are still low and the folks who were biding their time, keeping their credit clean and saving money are ready to make their moves.

[Folsom Guy]

125 % refi is popular as you can imagine.

Any refi with no appraisal is popular ( HARP, VA streamline, FHA streamline )

Shorter terms of 20 year, 15 year, or even 10 year fixed are also popular.

Whate rates and apr can one expect assuming conforming, 20% down and good credit for 20, 15 and 10 yr loans?

[folsombound]

Steve:
Just for grins (and maybe more) what is out there in the $300-$325K range in a 3/2 single story home? I'm looking at alternatives before I pay off the mortgage on the place I now have. I suspect it won't work but no harm in looking or asking.

[Steve Heard]

Steve:
Just for grins (and maybe more) what is out there in the $300-$325K range in a 3/2 single story home? I'm looking at alternatives before I pay off the mortgage on the place I now have. I suspect it won't work but no harm in looking or asking.

There are 9 'active' single story, 3 bed 2 bath homes priced between $300K and $325K in Folsom today. There are 3 'active short sale'.

Expanding a bit out of that range, there are 18 'active' and 15 'active short' listings priced between $275K and $340K.

They range in age from 5 to 36 years, and in size from 1258 to 1983 square feet. That 1983 sq footer was built in 84 on a .29acre lot, advertised as having new tile flooring, granite, paint and replastered pool.

Lots of choices out there. Would you like to walk through and see what your money buys?

[Redone]

Whate rates and apr can one expect assuming conforming, 20% down and good credit for 20, 15 and 10 yr loans?

I will PM them.

[Chad Vander Veen]

Another thing to look at when looking at the Folsom real estate market, is to look at the absorption rate. The Rate of Absorption represents how much of the current active listings (as a percentage) are being absorbed (sold) each month.

Folsom's absorption rate is down 42.8% from this time last year. Part of that is (in my opinion) because of the buyers that wanted to take advantage of the tax credits, speeding up their home buying. I also think we are adding inventory, because seller's have come to the realization, that the market is not going to go back to the prices they were in 2004 and early 2005 and they can't or do not want to wait any longer to sell their home.



M.E.G.

So YOU'RE the one we get mailers from every other day

[M.E.G.]

Guilty as charged

M.E.G.

So YOU'RE the one we get mailers from every other day