5 replies to this topic

[Steve Heard]

The first quarter numbers are in and there are some surprises.

 

Folsom real estate prices are creeping back up, with the average price per square foot for homes sold currently at $210, after dropping to $203 per foot in January, and up from $201 one year ago.

115 homes went ‘pending sale’ in March, the highest number since May of 2013.

 

Inventory is down, as March ended with 129 Folsom homes for sale, down from 155 one  year ago, and with the current rate of sales, leaves us with 1.7 months of inventory.

 

With the lack of inventory, low rates, good weather and an improving economy, more and more people are entering the housing market.

 

Average days on market fell to 41 in March, down from 61 in February.  Of the 212 homes sold in the first quarter, exactly 1/3 of them sold in 7 days or less.

 

What’s it all mean? There are lots of active buyers out there ready to make offers, and if the house is priced right, it will sell quickly.

 

As for inventory, I can’t say why fewer people are putting their homes on the market. Maybe we’ll see some significant increases in the coming months, though as of today, there are only 129.

 

Stay tuned.

 

What are your thoughts?

 

 

[rip]

Spot on as usual Steve.  Been a very interesting spring so far.  Nice houses seem to be selling very quickly, often above asking.  That said, there does not seem to be much appetite for homes with condition or location issues.  My guess is that prices have increased to a level where most people can't afford a down payment AND updating.  The lack of new inventory is truly puzzling.  I watch the market closely and would expect to see increasing inventory as we move into spring, but that does not seem to be happening to any great extent.  Inventory seems stuck in the 125-140 range and has been since January.   Any thoughts on this Steve?  

[Steve Heard]

Spot on as usual Steve.  Been a very interesting spring so far.  Nice houses seem to be selling very quickly, often above asking.  That said, there does not seem to be much appetite for homes with condition or location issues.  My guess is that prices have increased to a level where most people can't afford a down payment AND updating.  The lack of new inventory is truly puzzling.  I watch the market closely and would expect to see increasing inventory as we move into spring, but that does not seem to be happening to any great extent.  Inventory seems stuck in the 125-140 range and has been since January.   Any thoughts on this Steve?  

 

As I learned long ago, there's a number for everything.

 

The ones with location or condition issues will sell, as long as they are priced right for their location and condition.

 

The problem is that some people expect to get top dollar for houses that don't warrant it, and they sit on the market as a result.

 

I don't know what the deal is with inventory. Lots of people content with what they have, I suppose.

 

I do have a couple of listings where the sellers are preparing them right now, because they want top dollar and are willing to get them in top-dollar condition.

 

Let's see where things go. That's all we can do.

 

 

I've seen some of the one

[rip]

I've been wondering if low inventory leads to more low inventory.  By this I mean, people looking to sell and move up, take a look at the MLS and see a lot of low quality/high priced listings and wonder what they would buy if they sold their current place.  I know a few people in that situation.

[4thgenFolsomite]

well, I'd like to buy a house for about $800k and I want custom built-ins and I want it to be close to my husband's work, but I don't know where it is.  Can you find me one today?

[Steve Heard]

well, I'd like to buy a house for about $800k and I want custom built-ins and I want it to be close to my husband's work, but I don't know where it is.  Can you find me one today?

 

You don't know where your husband works? No problem. I'm psychic!

 

For those that don't get it, I had a call like that last week. A woman was in town while her husband interviewed with a medical institution that has at least 5 locations in the Sac region. She wanted to be close to his work and was po'd because I told her I needed more info.  I didn't want to show her El Dorado Hills if he would be working in Elk Grove.