If the current activity is any indication, the Folsom housing market is getting back in full-swing.
It’s too early to call it a rebound, but after months of lagging sales, and homes averaging 56 days on market, there’s a sudden increase in sales, and they’re going fast.
The numbers tell the story: Looking at homes for sale in Folsom today, there are 108 available, the same number as December, and the lowest number since May of 2013. At the same time, offers are being made and accepted at a frenzied pace.
Home owners accepted offers on only 48 homes in December, 70 in January, and in the first 2 weeks of February, 54. Of those, 21 of them were on the market for 7 days or less, many with multiple offers.
That doesn’t mean that all you have to do is put a sign in the ground and watch as the bidding wars begin. You do have to price your home right for the market, and some price points are more popular than others.
My 3 most recently listings, priced at $270,000, $275,000 and $389,000, all had multiple offers within days of going ‘active’. All 3 were smaller, more modest homes, with the largest being 1550 sq ft.
Agents are reporting similar activity for homes priced up to about the upper $400,000 range, with the average among the pending sales priced at $444,000.
On the other side of the coin you’ll find that of the 108 homes for sale in Folsom today, 44 are priced above $500,000, and they average 79 days on market. Despite that fact, only 15 of them have lowered their prices in an effort to attract more buyers.
Buyers seem more conservative and modest today, and they should be. Gone are the days where the rule of thumb was ‘buy the most you can, because they just keep going up in value.’ Right now, buyers are looking for something they can comfortably afford, rather than going for big and luxurious.
If and when they find it something reasonably close to what they are looking for, however, they jump on it right away, and with competition for a relatively small supply, they are wise to do so.
With rates in the mid 3% range, FHA lowering its mortgage insurance premiums, and an improving economy, we may continue to see improvements in sales and gradually, increased prices.
So, if you’re thinking about buying, make sure you are pre-qualified and ready to go when you see the right property. If you are selling, take time to understand the market and price your home accordingly.
We’ll see how this all shakes out in the coming months.
Steve Heard, Folsom Realtor
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