It's time once again for a quick look at Folsom housing numbers.
The train keeps on rolling, and despite rising interest rates and low inventory, more buyers are jumping on board, and driving prices higher.
According to TrendGraphix, for April 2018, Folsom home prices sold for an average of $262 per square foot. That is the highest price per foot since April of 2006, when we topped out at $271 per.
Are they going to keep on rising? Is this a sign of the apocalypse? Should we expect prices to start falling?
I don't think so.
Some key differences between today's market, and the one back in 2006:
- Interest rates averaged 6.51% in April 2006. Today, we're looking at a national average of 4.47%
- At 6.51%, a $400,000 loan would bring a payment of $2531
- At 4.47%, that same loan amount would have a payment of $2020, so while prices are high, homes are actually more affordable.
- April 2006 - 75 sales, 65 pending
- April 2018 - 87 sales, 95 pending, proving that instead of slowing down, things are heating up, and we're not yet in the summer buying season.
- In April 2006, home owners were hitting the panic button, and by May of that year, there were 438 homes on the market, a 7.7 month supply
- Today, there are 97 homes for sale in Folsom, a 1.1 month supply. Sellers are only selling if they have to, or have an irresistible opportunity. In other words, not many are cashing out and gettin' while the gettin's good. They are staying put.
Days on Market
- By summer of 2006, homes were sitting on the market over 80 days
- Today, taking out the 3 high-end homes that took months to sell, the overall average Folsom home sells in 14 days. Whether you want to call them desperate or aggressive, home buyers are moving quickly to get homes as soon as they hit the market.
Although the numbers vary, we are seeing the same pattern of high prices and strong sales throughout the region. Sacramento, Roseville, El Dorado Hills, Elk Grove, you name it, all communities are dealing with the same issues. Sacramento County overall averaged $232 per foot last month.
The SacBee published an article last week calling Sacramento the fastest growing big city in California, and with more and more Bay Area residents cashing out and heading this way, and more companies opening offices in the region, growth is expected to continue for years to come.
I remember in 2012 when prices first started increasing, there were people saying that it was a temporary spike and that prices would come back down. I know some who have been waiting for that prediction to come true. 6 years later, we're almost back to peak numbers.
Barring the unforeseen, with our population growing and not enough homes being built, the demand vs supply should remain strong, so I wouldn't hold my breath.
By the way, the average price per square foot in San Francisco last month was $1086, and San Mateo County at $868, and Santa Clara came in at $680, making the Sac region look like a downright bargain.
For more information, or if you're looking to buy, drop me a line.
There are 97 homes on the market in Folsom today, and 32 have been on the market a week or less. If you're ready, do it now.
Steve Heard is a Folsom resident and Realtor with Keller Williams.
BRE Licence #01368503
Reach Steve at 916 718 9577 or email email@example.com