BANK OWNED (REO) HOME SALES DATA FOR FOLSOM, CA JULY 2010

Folsom, CA REO (BANK OWNED) SALES DATA FOR July 2010

This is a continuation of a three year study of Bank Owned home sales for Folsom, CA.  This report covers REO homes sold in July 2010.

There were only 9 REO homes sold in July, the lowest number for some time and a continuation in the trend of reduced number of REO homes sold in Folsom.  That trend paralleled the reduction in the number of REO homes available for sale.

The average days-on-market for the month was 54, back within the normal range after a statistical anomaly of 84 days the previous month–due to the sale of one home that had been on the market for 525 days.  There were no homes that sold that had been on the market for over 100 days this month.   In July only two of the bank owned homes sold in two weeks or less, an unusually small number.    

The 9 homes sold represent only 20% of all homes sold in Folsom.   

The overall home inventory in Folsom increased markedly to a 5.5 month supply, up from the 3.2 month supply reported for June and the highest reported level of inventory in Folsom for more than 14 months.  A neutral market is considered a 6 month inventory.  So, we are moving from a seller’s market to a neutral market.  The inventory of bank owned homes has also increased.  It is 4.7 months, more than double the 2.2 month inventory reported in June.    Available inventory in Folsom has not reached the six month level in well over a year.

The cost per square foot of REO homes sold in July increased to $ 170, up from $ 165.  It has been running in a narrow range of $ 176 to $ 156 over the past fourteen months. The cost per square foot of all homes sold in January was $ 174, unchanged from the previous month.      

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented only a 2% savings for REO buyers.  This is the smallest margin since we started reporting these figures.

The overall sales price for REO homes was 94.2% of the final asking price, and 23% of the buyers paid more than the asking price for their bank owned home in July.  There was only a $ 5 dollar per square foot savings in the purchase of REO homes, compared to the cost of all homes sold.  When we apply that price difference to a 2500 square foot home it represents a $ 12,500 savings, something worth considering when selecting a home.

The data follows: