While interest rates are stubbornly high, and luxury buyers are driving a lot of the action statewide, the Folsom real estate market has its own unique trends. Whether you’re trying to time a move, wondering it’s a ‘good’ time to buy or sell, or just want to get input from a local expert (that’s me), here’s the quick breakdown of the market as we wrap up May.
On the National Front
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Rates Stay Sidelined Above 6.5%: Mortgage purchase rates dipped slightly this week, with the 30-year fixed rate averaging 6.56% according to Bankrate’s latest data. Despite minor fluctuations, rates in the mid-to-upper 6’s due to inflation and the Middle East conflict pushing up oil prices.
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The “Higher-for-Longer” Reality: Economists from Fannie Mae and the Mortgage Bankers Association (MBA) expect rates to stay above the 6% for the vast majority of 2026.
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Luxury Housing Surge: National reports show that luxury buyers—unfazed by financing costs due to liquid stock wealth—are driving most spring transactions. New luxury listings grew 2% year-over-year, while traditional middle-market listings saw a mere 0.6% uptick, leaving entry-level inventory tight.
California Market Trends
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A Tale of Two Markets: The latest figures from the California Association of REALTORS® (C.A.R.) show that California’s median single-family home price hit a new high of $914,810. While existing home sales posted a 4.1% year-over-year increase—driven heavily by luxury properties over $2 million—many first-time buyers feel locked out.
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Sellers Cutting Prices: Realtor.com’s spring progress report shows active listings rising across the state. This slower, more balanced market has forced an increase in price cuts on homes that sit beyond the typical “days on market” threshold. In other words, the ones that are priced too high ain’t sellin’.
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Insurance Pressures Loom: C.A.R. analysts are tracking growing concerns over building operational costs. The California FAIR Plan (the insurer of last resort) is widely expected to push through an approved 29.1% average premium hike this fall, squeezing affordability further. Yikes! This can have a devastating effect on houses in high fire danger areas.
Folsom Specific Market Data
(As of May 30, 2026)
| Metric | May 2026 Activity | Context & Year-Over-Year Change |
| Active Resale Listings | 127 homes for sale in Folsom | Down from 154 listings in May of last year; averaging 35 days on market. |
| Pending Sales | 55 since May 1 | Down from 72 last year; averaging a quick 23 days on market. |
| Closed Sales | 70 closed in May | Averaging 26 days on market; holding completely steady with the exact same volume as last year. |
Bonus Stat: Competition remains fierce for well-priced homes. 30 of the 55 pending sales and 31 of the 70 closed sales faced multiple offer situations.
Key Take Aways:
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Sellers are staying put: Haven’t you heard that one before? It’s true. A lot of homeowners are looking at their current low mortgage rates and deciding to just stay put for now. Can you blame them? Still, some are upsizing, downsizing, marrying, divorcing and relocating, so if there’s a need, they will sell.
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Buyers are being cautious: The drop in pending sales shows that buyers are being a bit more deliberate. The decline was pretty sharp for May. Between global news and tight inventory, people are taking their time and making sure the move is exactly right.
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The demand is absolutely there: Even with higher rates, 70 closed sales prove that people still want—and need—to buy homes in Folsom.
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Well-priced homes still move fast: The biggest takeaway? Over half of the pending and closed homes had multiple offers. If a house is priced right, buyers are still jumping on it fast.
Want more information? Care to share your own thoughts? Drop me a line: Steve Heard – eXp Realty of Northern Ca, Inc – DRE#01368503 – 916 718 9577 – steve@myfolsom.com
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