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Folsom Home Sales Drop 30% – Dip Or Blip?


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#1 Steve Heard

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Posted 14 September 2017 - 04:58 PM

Folsom Home Sales Drop 30% – Dip or Blip?

September 14, 2017

Folsom-Sales-August-1-382x253.jpg

Folsom home sales declined sharply in August, closing only 74 units, compared to 105 in July, and 105 for August 2016.

What’s the cause?  I’m not quite sure. Interest rates remain low, as does unemployment, and the experts say the economy is steadily improving.

 

folsom-average-price-sold-august-2017-38

Are buyers resisting the rising prices? Perhaps, but if you look at the average price of sold homes,  it’s been hovering between $530,000 and $555,000 for the past few months.

Considering that there is a 30 to sometimes 60 day escrow period, August closings are the result of June and July sales activities.

Were home buyers on vacation? Staying out of the heat?  Or, is this a sign of a slow-down in the market?

With prices in some areas near or even above the levels of 2005, many fear a correction, or even a crash, and they’ll look at that 30% drop in sales as a sign of the Apocalypse.

Before we hit the panic button, thought, note that pending sales actually spiked in August. There were more home buyers, 25% more, getting offers accepted in August than in July.

So for now, with low interest rates, low unemployment, a growing population, and fewer homes being built, I don’t think we’re headed for a correction, but I’m keeping my fingers crossed.

Some fun facts for you for the month:

  • Average price of homes on the market in Folsom in August: $667,000
  • Average price of homes SOLD in Folsom in August: $543,000
  • Average price per square foot for SOLD homes: $253
  • Number of homes for sale in Folsom right now: 123 (plus 14 condos)
  • Number of homes for sale in Folsom priced below $400,000 – 14 (plus the condos)
  • Age of my grandson – 8 months

henry-on-car-236x500.jpg

 

Til next time…

 

Or if you want to contact me, I’m Steve Heard, Folsom Realtor –

Keller Williams Realty, owner of MyFolsom.com – 916 718 9577 – Lic 01368503


Steve Heard

Folsom Real Estate Specialist

EXP Realty

BRE#01368503

Owner - MyFolsom.com

916 718 9577 


#2 4thgenFolsomite

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Posted 14 September 2017 - 09:41 PM

8 months already?
Knowing the past helps deciphering the future.

#3 2 Aces

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Posted 15 September 2017 - 06:59 AM

I just figured that low inventory was the main factor in that, Steve. No?



#4 Steve Heard

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Posted 15 September 2017 - 08:48 AM

8 months already?

 

Yes! He is growing so fast. Changing every day. Awesome kid. 



I just figured that low inventory was the main factor in that, Steve. No?

 

Yes, inventory can be an issue, but inventory was at its highest in July, while pendings were down, and inventory was low in August, while pendings were up. Could also be a case of not having the right inventory.


Steve Heard

Folsom Real Estate Specialist

EXP Realty

BRE#01368503

Owner - MyFolsom.com

916 718 9577 





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