Okay, here we are, half-way through the year, and it’s a good time to take a look at the Folsom housing market.
Data shows a drop in sales, a rise in inventory, and last month, a spike in pendings, which was likely caused by the drop in interest rates.
Remember last fall when the ‘experts’ predicted rates would hit over 5%, some even predicting close to 6%?
As of July 3, the national average 30 year fixed rate was 3.75% .
Perhaps this is why pending sales rose to 101 in June, compared to 89 in May. Note that May pendings were down from 120 for the same month in 2018.
Overall, we’ve seen a slow down in Folsom housing sales for the first half of the year, with closings down ten percent.
Inventory, though not outrageously high, has climbed. June closed out with 144 homes for sale in Folsom . That’s the highest number since August of 2017, when we had 156 homes on the market.
Folsom DOM (days on market)
Hand-in-hand with the increase in inventory, is an increase in days-on-market. In June of 2018, homes sold in an average of 19 days in Folsom. This June, 29 days. 44 of the homes for sale have been on the market for 2 months or more.
What this is boiling down to is we are seeing pickier buyers.
Prices remain high, averaging $580,000 in Folsom, and with more choices, buyers can be and are being more selective.
I recently had a client reject a listing because she saw dog hair along the baseboards. She imagined her 6 month old or 2 year old ingesting some. Another passed on a beautifully remodeled home because of overgrown trees. Both were easy fixes, but the buyers were turned off, seeing these issues as signs of neglect.
Yes, there’s that old saying that ‘there’s nothing wrong with any house that a lower price won’t fix’, and for some sellers, if they aren’twilling to detail their homes, that’s the solution.
That’s not to say that prices are falling, nor that sellers should expect a long listing period. Of the 89 sold in June, 44 sold in 10 days or less. They were priced right and presented right.
So, the message to sellers is that if you want top dollar, price it right and make a great first impression.
For buyers, you’ve got some choices out there, and with lower interest rates, they may be more affordable.
For more information on housing in this or other areas, or to discuss strategies for buying or selling in today’s market, drop me a line.
Steve Heard is a Folsom Realtor with EXP Realty, based in Folsom CA, and owner of MyFolsom.com
Reach Steve at 916 718 9577 or firstname.lastname@example.org – DRE#01368503