Here we are into the fall, the weather is changing and so is the Folsom housing market. There’s some good news and bad news, maybe depending on your perspective.
To the bad? Folsom home sales fell in September. Only 73 homes were sold, compared with 79 a year ago. Is that significant? Maybe, maybe not. It is an 8% drop, but we usually do see a tailing off in sales toward the end of the year, usually hitting bottom in December and January.
Days on market also increased to 38, up from 29 last month. Again, it’s not unusual for this time of year, but September of last year averaged 20 days on market.
Inventory is also falling, with 102 homes for sale in Folsom last month, vs 131 in September ’18.
Average price per square foot remained relatively flat, at $276 per square foot.
On a positive note, Folsom pending sales were up sharply, with 90 sellers accepting offers on their properties. That’s a 73% increase.
The surge in pending sales could be the result of the drop in mortgage rates. According to FOX business news, mortgage applications were up 5% last week, and are up 163% over last year at this time, as the national average 30 year mortgage dropped to 3.9%
Let’s see if that continues.
With about a 1.3 month supply of homes, we still call it a ‘sellers’ market, but we do see a drop in the sale price vs list price. This could be due to buyer price resistance, giving sellers a reality check.
So, what’s it all mean? Well, we’re seeing the typical slow down, but with interest rates so low, some buyers are jumping off the fence and making their moves. With increasing days on market, and pickier buyers expecting more for their money, sellers would be wise to price it right if they are serious about selling.
As always, those of us not currently in the market have to wait and see. For those considering buying or selling, now may be your time.
Want to discuss? Drop me a line.
Steve Heard is a Realtor with EXP Realty, based in Folsom CA and is the owner of MyFolsom.com
Contact Steve at 916 718 9577 or firstname.lastname@example.org