As the summer winds down, it's time to take a quick look at the Folsom housing market.
It looks like the recovery, though not over, sure has slowed down.
For 18 months, from March 2012 to September 2013, homes in Folsom were selling fast, and by last summer were averaging 16 days on market. At one point, there were only 82 homes for sale in Folsom, and multiple offers were coming in, sometimes sight unseen.
Things sure have changed. For the 7th straight month, Folsom housing inventory has been on the rise, ending July with 221 homes for sale, a 3-year high. The average days on market is currently 40.
No, it's not time to panic. It seems to be a sort of leveling of the playing field.
At the current rate of sales, Folsom has about 2.5 months of inventory, still well below the 5 to 6 months needed to call it a balanced market.
I think that what's happening here is that the investors snapped up the lower-priced, rental-grade properties, and have just about abandoned the market.
Those who were sitting on the sidelines ready to buy also jumped in when prices started to rise.
Now, we've got a more traditional market, with first-timers, down-sizers, relocation and life-events driving sales, rather than bargain-basement prices.
Speaking of prices, we've seen a softening there, with a third straight month of decline. The average price per square foot dropped from a $212 in May, $210 in June to $206 for July, but that's still about 6% higher than a year ago, and 30% higher than when prices bottomed out in February 2012.
Although we're averaging 40 days on market, some are selling fast, and some slow, often due to size and price range.
Of the 92 homes sold in Folsom in July, 32 of them were gone in 10 days or less. The average size of those was just under 2100 square feet and sold for $450,206. That seems to be the sweet spot for Folsom, as I get many calls and inquiries from buyers looking for mid-sized homes priced in the low to mid-$400,000 range, and the sales figures bear that out.
The 25 homes which took longer than 40 days to sell average 2771 square feet and sold for $535,888, and 23 of them had at least one price reduction prior to getting into contract.
So, even with inventory growing, we're still experiencing strong sales and sometimes fast sales, for the right home at the right price.
If you've got a home on the market, or are considering selling, it is important to do your homework, work with your agent if you have one, and take your best guess at the right price.
With today's technology, the whole world knows when your home goes on the market, so if it's taking longer than average to sell, re-think the pricing strategy. There's an old saying that goes, 'There's nothing wrong with ANY house that a lower price won't fix!'
