FOLSOM, CA HOME SALES DATA – JULY 2012

FOLSOM, CA HOME SALES DATA – JULY 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 July 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 very slight fluctuation from month to month, the viewer can see that there is a slight trend upward over the past few months. The July number is the highest it has been in fifteen months. The pundits advise that we hit the bottom of the market in Folsom in March of 2012. The lowest cost –per-square-foot in Folsom in the past fifteen months was in February.

Those potential buyers who decided to remain on the fence, “until prices hit bottom” missed the boat, but only by a few months. The housing shortage is going to result in price increases. The new 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). The inventory level has climbed slightly in the past two months. The 0.7-month supply in May was the lowest on record. The inventory increased to a 1-month supply in June and a 1.3-month supply in July. As prices start to increase, more sellers are entering the market. Let’s hope that this trend continues. 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 during the entire period this report covers. 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.

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.

The third chart shows the average days on market, the length of time it takes the average house to sell. Note that this number has been plummeting since February and stands at 46 in July. Also, note that the average home sold for full asking price in July.

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.

To use the very best Internet property search tool go to www.BuyYourVilla.com.