Jump to content






Photo

Folsom Mid-Year Housing Numbers


  • Please log in to reply
5 replies to this topic

#1 Steve Heard

Steve Heard

    Owner

  • Admin
  • 13,669 posts
  • Gender:Male

Posted 20 July 2018 - 10:08 AM

Folsom-for-sale-and-sold-July-2018-382x3

We’re just past the half-way point for 2018, and time to take a look at housing stats… and try to predict the future. The stats are the easy part…

So, for the past 6 months the average price per foot for homes sold in Folsom has ranged from $253 to $262, with June sales averaging $261.  That’s about a 6% increase from last summer’s prices.

Of course, smaller homes sell for more per foot than larger ones, and homes under 2000 sq ft sold for an average of $300 per foot in June.

Inventory-wise, we’ve been trending below last year’s low numbers, which were lower than the year before that, and the year before that…

There were 129 homes for sale in Folsom in June of last year, and 113 this year. July isn’t much better, with 118 on the market in Folsom today.

Sales are still strong, with 110 closed in June, compared to 111 in June 2017.

These trends are similar to other communities in the region, with inventory still down, sales still strong, and prices up slightly.

With world class community amenities, great schools and overall quality of life, Folsom home prices remain the highest in the region, on a price-price-per-foot basis, with the exception of the smaller community of Granite Bay, with their 35 sales averaging $283 per square foot in June.

Comparing-Folsom-to-others-382x364.jpg

Looking to the future, where’s this all going? What about this bubble we keep hearing about?

As I’ve said before, in my 15 years of selling homes, and even before that, I can’t recall a time when seemingly half of the experts, and ordinary citizens didn’t believe the market was about to crash. Even in 2012, when prices hit bottom and started to rise, the naysayers were saying the recovery was a temporary bump, and the worst was yet to come. That was 6 years ago, and the average price per foot was at $148.

Still, what goes up, must come down, right? The questions are; when will it happen, what will cause it, and how far will prices come down.

I don’t know.

What I do know is that the 4 major cost factors in building homes; land, materials, labor and regulations, all cost more today than ever, and the demand for housing is greater than ever. Toss in low unemployment, low interest rates, tight lending regulations and a growing population, the train shows no sign of slowing down.

I’m often asked ‘when’s the best time to buy a house?’. My answer is, ‘when you need one.’

I need a roof over my head no matter what the economy is doing, and today, I’m either going to pay high rents or a high mortgage payment.

For more info, or if you’re interested in buying or selling this area, drop me a line. See Folsom homes for sale here.

Steve Heard is a Realtor with Keller Williams in Folsom CA and owner of www.myfolsom.com

Reach Steve at 916 718 9577, steve@myfolsom.com 

DRE#01368503   

 


Steve Heard

Folsom Real Estate Specialist

Keller Williams Realty

BRE#01368503

Owner - MyFolsom.com

916 718 9577 


#2 The Average Joe

The Average Joe

    Hopeless Addict

  • Premium Member
  • PipPipPipPipPipPipPipPipPipPip
  • 6,352 posts

Posted 20 July 2018 - 07:15 PM

I do believe we are in a bubble, however, we are in a very unique situation.  The biggest factor driving our prices (along with the ones you mentioned) is bay area transplants.  Their housing has gotten ridiculously expensive. Combine an attractive Folsom lifestyle with a SF folks wanting a "better life" with less crowds, less traffic, and less feces (yes, i said it) and our housing will continue to be strong. Did you catch the story the other day that 40% (!) of SF homeowners are considering moving in the next five years?  Really, the only thing I can see putting a significant crunch on prices would be a substantial interest rate increase. Once again, we will luck out as SF people have a lot more cash equity.  South of 50 development will have an impact on our desirability, but that is hard to quantify.   I do know that I had a discussion with a couple in Granite Bay that were sorry they moved there rather than Folsom. They still get in their car to drive here to walk or ride bikes on the trails.  It's all academic and numbers on paper until the day you decide to sell.

"Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive." -- C.S. Lewis

 

If the only way to combat "global warming" was to lower taxes, we would never hear of the issue again. - Anonymous

 

                                                                  It is Natural when Intelligence sees Stupid, it rejects Stupid, and Opts for Truth..... Stupid then labels Truth as Hate.-  Anonymous

 


 


#3 Steve Heard

Steve Heard

    Owner

  • Admin
  • 13,669 posts
  • Gender:Male

Posted 22 July 2018 - 10:14 AM

I do believe we are in a bubble, however, we are in a very unique situation.  The biggest factor driving our prices (along with the ones you mentioned) is bay area transplants.  Their housing has gotten ridiculously expensive. Combine an attractive Folsom lifestyle with a SF folks wanting a "better life" with less crowds, less traffic, and less feces (yes, i said it) and our housing will continue to be strong. Did you catch the story the other day that 40% (!) of SF homeowners are considering moving in the next five years?  Really, the only thing I can see putting a significant crunch on prices would be a substantial interest rate increase. Once again, we will luck out as SF people have a lot more cash equity.  South of 50 development will have an impact on our desirability, but that is hard to quantify.   I do know that I had a discussion with a couple in Granite Bay that were sorry they moved there rather than Folsom. They still get in there car to drive here to walk or ride bikes on the trails.  It's all academic and numbers on paper until the day you decide to sell.

 

Joe, I love my city by the bay, but I can't see how people are still flocking there with the crowding, traffic, crime, 7500 homeless sleeping on the streets, and yes, pooping there too. 

 

As for prices, you are correct that an interest rate increase could change the game, particularly if there are large jumps. We are close to or at 2005 pricing levels now. Back then, we were nearly at 7% interest. I remember clients borrowing $500k at 6.75%. That's a payment of $3243 per month. Today, we're about 4%, which bring a payment of $2387. That's $856 difference per month.

 

On the other hand, my dad bought his house at 18% interest. Of course, that was on a $40,000 mortgage! 


Steve Heard

Folsom Real Estate Specialist

Keller Williams Realty

BRE#01368503

Owner - MyFolsom.com

916 718 9577 


#4 camay2327

camay2327

    GO NAVY

  • Moderator
  • 11,427 posts
  • Gender:Male
  • Location:Folsom

Posted 22 July 2018 - 04:19 PM

Steve, I see you have a listing in our area, on Travis Street.

 

There are 2 or 3 for sale on that street.


A VETERAN Whether active duty, retired, national guard or reserve - is someone who, at one point in their life, wrote a blank check made payable to "The United States of America" for an amount "up to and including their life". That is HONOR, and there are way too many people in this country who no longer understand it. -Author unknown-

#5 Steve Heard

Steve Heard

    Owner

  • Admin
  • 13,669 posts
  • Gender:Male

Posted 23 July 2018 - 12:10 PM

Steve, I see you have a listing in our area, on Travis Street.

 

There are 2 or 3 for sale on that street.

 

Yes, suddenly, several homes on the market in the nieghborhood. 2 on Travis, 1 on Duncan, 1 on Keefer and 1 on Morton. 

 

Let me know if you'd like to see any.  


Steve Heard

Folsom Real Estate Specialist

Keller Williams Realty

BRE#01368503

Owner - MyFolsom.com

916 718 9577 


#6 camay2327

camay2327

    GO NAVY

  • Moderator
  • 11,427 posts
  • Gender:Male
  • Location:Folsom

Posted 23 July 2018 - 03:27 PM

 

Yes, suddenly, several homes on the market in the nieghborhood. 2 on Travis, 1 on Duncan, 1 on Keefer and 1 on Morton. 

 

Let me know if you'd like to see any.  

We are  staying where we are on Duncan Way.


A VETERAN Whether active duty, retired, national guard or reserve - is someone who, at one point in their life, wrote a blank check made payable to "The United States of America" for an amount "up to and including their life". That is HONOR, and there are way too many people in this country who no longer understand it. -Author unknown-




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users