My Current Observations for Folsom Real Estate
With both the real estate market and the stock market giving us a bumpy ride, I thought I would just tell you what I am seeing.
First, I never thought there would be a time that I would have one of my website pages up at all times on the stock market! I am sure I am not alone. While I sense from a few of my buyers, concern on the stock market and that they may wait until things settle down to buy, most are full steam ahead, looking for the great deals that are being offered. The pending sales in Folsom are currently showing that to be the case for everyone. This past week Folsom has had 12 homes go pending. The week before that we again had 12 homes go pending. Three weeks ago 13 homes went pending. I don’t know if we can keep it up. There are several reasons that we may not be able to.
The interest rates are inching up. Interest rate affects buyers so much, because it hits them in the monthly payment. It is also getting harder to get a mortgage. Even those with pristine credit are having a difficult time. The banks are scared to loan out any money, whether to each other or to borrowers looking to purchase a home, car, or big ticket item.
Then we have the “bail-out” package. No one knows what will be offered, who might qualify, what is going to happen. That includes sellers, buyers and the banks. So the banks are wondering, is it better to agree to a short sale, foreclose on the property or perhaps have the toxic loans bought from us by the government. There is a sense that they are not agreeing to as much, waiting to see what might happen.
I also think that the move up buyers will reconsider, with so much uncertainty with stocks and job security. While it has been a great time to move up if you have equity, some may decide they can live without the extra room right now, keeping in a smaller home and smaller mortgage.
We are also heading into the holiday season. It can slow down while people have other commitments to deal with and put looking for a house on the back burner.
We are lucky that Folsom is a desirable town to live in and people continue to want to live here, that has and continues to help us keep our values up better than some areas. I will continue to make observations and comments to keep you up-to-date with the Folsom real estate market.