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Folsom Foreclosures for January
Folsom foreclosure activity is still strong. January saw 47 Notice of Defaults(NOD) filed and 38 Notice of Auction(NOT) filed. Last year same time we had 55 NOD’s and 23 NOT’s.
If you look at the chart below you can see the outcome of the NOT(auction). When it says “sold to bank” that means that the bank took it back(foreclosed). Sold to third means someone went to the courthouse steps and bought the property. Canceled means that the bank canceled the sale, possibly working out loan modification with the sellers, or perhaps it is in a short sale and the bank is giving time for the short sale to be completed. What is interesting in this graph is that there are more cancellations, perhaps owing to more banks trying to work out something with the owner of the property.
Folsom’s foreclosures based on loan balance shows that the largest amount of foreclosures are in the $300,000 to $400, 000 range.
Here are the estimated values of the Folsom foreclosures for January 2010. Note how the values of the homes being sold are in the range of $400,000 range, but average loans (above) are between $500,000 and $600,000.
No REO Wave?
Home buyers have been circling, anticipating a great wave of REO’s to hit the market for months. The illusive shadow inventory agents have been talking about. Instead of the great wave, Folsom is getting a trickle.
For several reasons, I don’t believe we will see a huge increase of REO inventory here in Folsom for quite some time if at all. Banks(some, not all) are working on loan modifications. Banks are also holding onto their REO inventory and releasing them a few at a time so as not to flood the market and push prices down lower.
Folsom’s home inventory is low. Today there are a total of 246 single family homes for sale, 107 short sales, 24 REO and 115 regular sales.
What this means to buyers who have been on the fence, thinking something better will come along, maybe with even better pricing, don’t bet on it. Almost all the buyers out there, in almost all the price ranges are looking for the turnkey home, new paint, carpet, granite etc. There is a lot of competition out there for those types of homes. Where I think buyers can and should look are at the homes that are in good locations, but need some updating or TLC. There is not as much competition for those and thus possibly a better value.
Potential sellers should also pay attention to Folsom’s low inventory, and put their home on the market now, with less competition from other sellers and REO’s, it is an ideal time to take advantage of the shortage of homes for sale here in Folsom.
If its time for you to take advantage of this market, call me, I love helping my clients get a good deal!
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