California Home Prices UP, How About Folsom?

California Home Prices UP, How About Folsom?

Although the number of California homes that sold in March dropped from the February pace, the median home price broke a 16-month declining trend.  In fact, the median price of existing single-family detached homes JUMPED 9.2% to $ 291,080 from the February number of $ 266,660. It was also up 1.6% from March 2011.

Available inventory statewide remains extremely low.  The further we get into 2012, the more indications we see that the housing market in on the mend.

Select this link to view the complete report from the California Association of Realtors:  http://www.car.org/newsstand/news/march2012sales

While information about national and statewide trends is interesting, local data is more important to local buyers and sellers. In this post we will discuss that local housing market in Folsom, California.

FOLSOM, CA HOME SALES DATA – MAR 2012

The purpose of this post is to provide those interested in the Folsom, CA housing market data about that market.  The data presented covers March 2012, and the preceding fourteen months.

The first chart lists the cost-per-square-foot for all homes sold in Folsom by month. 

Although there is a slight fluctuation from month to month, the viewer can see that there is little change in the past eight months. We submit that the Folsom market is bumping along at the much-touted “bottom.”  Those potential buyers who decided to remain on the fence, “until prices hit bottom” no longer have a reason to wait.  In fact, they may have already missed the boat!  The challenge will be to find any home that they can buy.

 
The second chart shows the number of months of inventory available (the number of homes for sale divided by the number of homes sold each month).  Pundits tell us that a six-month inventory is a neutral market.  Therefore, we can see that the Folsom market has been a seller’s market for some time.  There has been a shortage if inventory for many months and the trend is for an even smaller number of homes to be available.

The media is finally starting to realize that the housing market has changed.

Over a year ago, we posted an article warning about the pending housing shortage.  Obviously, we were correct.  All you have to do is ask those actively looking for a home.

It is going to get worse.  The demand will result in price increases and with those increases; more homeowners may put their homes on the market.  Unfortunately, without any new home construction in the past five years or more, we will still be short of inventory. 

If you would like to see this data for other cities and towns in our area feel free to contact us at (916)337-0658 or e-mail Mike@BuyYourVilla.com.

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