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A Look At Folsom REO's
Folsom’s Foreclosure’s inventory is inching up a bit.
Folsom is starting to see bank owned homes in the same numbers as February 2009, when we had on average 30 bank-owned homes. Our highest month was October 2008 with 37 reo’s for sale.
New foreclosed listings are also heading up with 21 new reo listings in April.
The average price per square foot for the foreclosed homes is up 4.2% from this time last year to $176/sqft. We are seeing prices the same as early 2009.
The foreclosures are taking longer to sell also. Up from 20 days on the market in June 2009, now 83 days on market.
Folsom sees higher reo inventory
Folsom REO's pricing inches up
Days On Market Longer for Folsom Foreclosures
Busy as a Bee!
As you know I held an open house this past Sunday. It was my first one since the beginning of the year. While a lot of Realtors do not like to hold open houses, I love to. I get to spend a few hours showing off a great home, talking to people about real estate. Helping them learn more about the real estate market and how to make the right decisions when it comes to buying or selling a home.
This past Sunday was crazy busy. I was at the open house for three hours and it was non-stop people. Depending on the price range, the lower the price, more activity you tend to get. The home for sale in Folsom priced at $599,000 would be considered a bit higher than average. There were people following me in from putting my open house signs out! I was talking about real estate for the whole three hours(and loved it).
I met a lot of people who are looking for the right home and are having a difficult time of it because of our low inventory. Some have offers on short-sales and of course, don’t know if it will be successful or not.
If you are thinking of selling your home anytime in the next year, I believe you should be on the market now. There is low inventory, we have the first time (and repeat buyer’s) tax credit and interest rates are low. And lots of buyers looking for that perfect home.
AAAARRRRGGGG
These days I feel like a pirate hunting for buried treasure. I am searching high and low for homes for my buyers. Inventory of homes for sale in Folsom is lower than it has been in five years. And if you take away the homes that are short sales, it gets even worse.
Today there are 236 homes for sale here in Folsom. Of that 236, 107 of them are short sales, meaning they may sell or the may not. If a buyer wants to take advantage of the tax credits offered, they would be gambling to make an offer on a short sale.
And I am not the only one looking for the treasure. Other Folsom agents are also hunting. Last week a bank owned home came on the market around 4pm. The size and price of the home put it in the range of one of my clients. I literally raced over to the home to preview it. It had been on the market less than an hour. I was not the first agent there! One other agent beat me to the home. He also had clients that needed that size home. By the time I showed my clients this weekend, there were at least 20 agents having gone through the home.
In December 41.8% of the homes for sale in Folsom sold, based on closed sales. This does not mean (in my opinion) that our prices will go up anytime in the future. But we have an active market. It is also still too early to see if we get a rise in inventory during our spring months. (I have my fingers crossed that we do!)
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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