Local Housing Market Gets a Bounce

The coronavirus and resulting ‘stay home’ orders had a swift and hard impact on the local housing market, but now the market seems to be rebounding.

Looking at the Tri-County (Sacramento, Placer and El Dorado) region, sales were down about 30% in April.

In the weeks after the state issued their ‘stay home except for essential needs’ order, 629 sellers pulled their homes off the market, and another 230 put them on temporary hold.

I think it’s important to note that cancellations are a normal part of the real estate market, as sellers can change their minds about whether, when or how they are going to sell.

The cancellation figure was an increase of 99 over the same period in 2019.

1855 homes went pending (sellers accepted offers), which is a 30% decrease from last year. Still, despite the ‘stay home’ orders, 1855 buyers had their offers accepted in April.

Looking at Folsom specifically, 47 homes went pending in April, 21 listings were canceled, and 5 were on temporary hold.

As of May 1, state and local governments allowed in-person showings of occupied homes, provided buyers, sellers and agents take necessary precautions.

The result? The Tri-County area saw 779 new listings, and 849 pending since then.

In Folsom, 37 homes went pending in 9 days. Remember, there were only 47 for the entire month of April.

Prices remain strong. While there were and always will be homes that are overpriced and sell for less than list, Folsom’s average price per square foot was $289 in April. That’s the third consecutive month prices have been above the 2006 peak price of $271 per foot.

It seems the combination of low rates (mid 3’s) and pent-up demand are pushing the market forward.

Looking at Folsom homes for sale today, there are 117, ranging in price from $419,000 to $1,295,000, with an average list price of $659,000.

It remains to be seen how the coronavirus and our response to it will affect the market moving forward.

As we ease up on restrictions, I think we’ll see a movement toward higher sales, but if employment doesn’t recover quickly, whatever time frame that may be, I wouldn’t be surprised to see buyers pull back.

I’ve talked to buyers who have concerns about the future, but don’t want to miss out on these low rates, which are making housing more affordable.

My daughter is pretty typical of buyers I’ve talked to. She’s confident in our future, and doesn’t want to miss out on low interest rates, so she and her husband are buying a bigger home for their growing family, but she also concerned, worried that her own home won’t sell.

Time will tell. I’ll be back soon with further updates.

In the meantime, if you want further info, maybe get some data for your town or neighborhood, or just need a shoulder to cry on, hit me up.

Steve Heard is a Realtor with EXP of California, DRE#01368503, and owner of www.myfolsom.com – Reach Steve at 916 718 9577 or email steve@myfolsom.com