For probably the last 2 years, home buyers and their agents have been lamenting the fact that available housing inventory is low.
It still is low, with 81 homes for sale in Folsom today, compared with 105 a year ago. The problem now is that the inventory that IS available isn’t what buyers want.
Take a look at the chart above, for the past year, the average price for homes sold in Folsom has been just over $500,000, and during that time, the average home listed for sale has been $100,000 to $150,000 higher. That’s pretty significant in itself, but the pool for higher end home buyers is traditionally smaller than for more modest homes, so it stands to reason that the majority of sales are of lower to mid-priced homes.
In February, however, we saw a sudden spike in high-end listings, with the average home for sale in Folsom listed at $762,000. That is a huge difference from the month before, and we’re not sure why.
It does raise some questions:
Are the high-end home owners seeing or hearing something that tells them to sell now?
Are owners of lower priced homes deciding to stay put?
Are we at or near the top of the market?
Or is this just a coincidental temporary spike?
With interest rates low, consumer confidence up, unemployment down, and a shortage of housing, there is no reason to believe that prices are about to fall, but still it is an oddity.
I’ll keep my eye on it and report back.
Any questions? Drop me a line.