With the kids back in school and the investor feeding frenzy over, homeowners throughout the region are seeing their homes staying on the market longer, and with inventory increasing, listing prices are starting to fall.
Of 201 Folsom homes for sale in August, 112 had price decreases, and El Dorado Hills has seen price drops on 50 of their 253 listings in the last 2 weeks alone.
Don’t hit the panic button just yet, though. Final numbers aren’t in, but it looks like sales are still relatively strong. There were 100 reported closed sales in Folsom last month, at an average price per square foot of $219, the highest in years, there are 94 currently pending sale.
Today’s buyers have a lot of choices though, and they are taking their time and being conservative with their offers.
This does’t mean that sellers are going to take low-ball offers, but rather that they have to pay attention to market trends, price accordingly, and be prepared to lower prices if the market doesn’t respond.
Once the right list price is found, sellers are rewarded with good offers. Folsom homes sold in August averaged 99.35% of the price listed at time of offer.
Sellers are becoming more creative to close the sale, and buyers a bit bolder in their requests. Eric McKay, Norther California Area Manager for Essex mortgage reports that he’s seeing buyers negotiating credit for closing costs of between 2 and 3% of the purchase price. In some markets, like Folsom, that can mean a credit for over $10,000.
We’ve also seen an increase in requests for inspections and repairs.
Time will tell if this is just the normal fall slow down, a correction or a trend, but for now, the advice is if you don’t have to sell, don’t. This isn’t a time to test the market, and your home will just add to the inventory.
If you are motivated to sell, realize that you’ve got to be realistic in your pricing, and know that realistic can change from week to week.
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