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.
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, firstname.lastname@example.org