BANK OWNED (REO) HOME SALES DATA FOR FOLSOM, CA – FEBRUARY 2011

BANK OWNED (REO) HOME SALES DATA FOR FOLSOM, CA – FEBRUARY 2011

This is the latest monthly report of a three plus year study of bank owned home sales in Folsom, CA.  This report covers February 2011.

There were 16 REO homes sold in Folsom in February, two more than sold the previous month.

The average days on market increased from 46 in January to 57 in February.  Three of the homes had been on the market for over 100 days.  However, 25% of the homes that sold were on the market for two weeks of less.  Well-priced homes in good condition are still selling quickly.

The 16 REO homes that sold represent 32.7% of all homes sold this month.

The available inventory of REO homes in Folsom declined from a 2.8 Month supply the previous month to a 2.4-month supply in February.  The available inventory for ALL homes declined from a 5-month supply the previous month to a 4.8-month supply in February.  Pundits advise that a 6-month supply is a neutral market, so we are still looking at a seller’s market.

The average cost-per-square-foot for REO homes was $ 152 in February, down from $ 170 the previous month.  That January number was unusually high, in fact the highest since March of 2010 and looks like a statistical anomaly at this writing. The average cost-per-square-foot for all homes sold in Folsom in February dropped to $ 155, down from $ 167 the previous month. 

The overall sales price for REO homes was 96.8 percent of the final asking price, on the lower side of the normal range.  In addition, 37.5% of the buyers paid more than the final asking price for their REO homes in February.

REO buyers paid 98.1% of the cost-per-square-foot for their when compared with the cost-per-square-foot for all homes sold in February.  This savings is smaller than normal.  When applied to a 2500 square foot home that represents a savings of only $ 7500.  When you consider that REO buyers must relinquish some of the rights the have when buying a home in a normal sale, one might question the prudence of a plan to purchase an REO.   However, the savings is usually far greater in an REO purchase. 

If you have any questions about purchasing a Folsom REO, or an REO anywhere in the area, feel free to give us a call (916) 337-0658.