Despite fears of another housing bubble, the area has seen tremendous growth in prices and sales over the past 18 months. I don’t know if it’s confidence in the future or safeguarding against it, but buyers seem to have determined that we saw the bottom of the market around February of 2012, and have been buying ever since.
Who’s buying? Everyone, it seems. At the lower end, the modest 1200 to 1600 square foot 3 bed 2 bath home has proven to be a great target for investors large and small, and for first-timers and folks re-entering the market.
The mid priced homes have been moving well, with many buyers moving up to larger homes, and a few first-timers looking long term.
Higher end homes, in the million dollar category, have also started to move and builders such as Elliott and DR Horton are back to building with a frenzy.
The questions I’m often asked are, ‘how high will they go’ and ‘how long will this last?’
Who knows? All I can do is point to stats and trends, and speak from experience. Those stats have shown that sales have out-paced new listings almost every month since February of ’12, and prices have risen almost every month as well. They also show that things may be changing, and in a hurry.
Take a look:
- Lowest average price per square foot for homes sold in Folsom in recent years occurred in February of 2012 at $148.
- Prices have climbed almost every month since, and as of July 2013, we’re at $194 per square foot, down slightly from the $196 mark set in June.
- For the first time since October of 12, June saw more homes listed for sale in Folsom (126) than were sold (117).
- July’s listings were at 144, while 100 were sold.