REAL ESTATE-Folsom,CA BANK OWNED (REO) HOME SALES DATA-FEBRUARY 2010

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

This is a continuation two plus year study of Bank Owned home sales data for Folsom, CA. This report covers REO homes sold in February 2010.

There were 9 REO homes sold in February, down one from January. This volume reflects seasonal adjustments in home sales. The days-on-market increased to 53, up from 46 the previous month, the second monthly increase in a row. In February, 30% of the bank owned homes sold in less than two weeks, this despite the low inventory.

The 9 homes sold represent 25.7% of all homes sold in Folsom, slightly lower than normal. There are far fewer Bank Owned homes available on the market and short sale homes continue to have an impact.

The overall home inventory in Folsom continues to drop and we have only a 2.2 month inventory at present. The lowest inventory in Folsom for the period we have been reporting these figures. This indicates a strong seller’s market. A neutral market is considered a 6 month inventory.

The cost per square foot of REO homes in January increased to $ 175 from $165 the previous month. That is a significant increase. The cost per square foot of all homes sold in January increased to $ 185, up from $ 176 the previous month. There is no doubt that the greatly reduced inventory is having an impact on prices. Could it be possible that we have seen the lowest prices and the market is starting to rebound?

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 a 5.4% savings for REO buyers, a little less than in the previous month.

The overall sales price for REO homes was 95.6% of the final asking price. This represents a reduction and reflects the longer period the homes were on the market. The banks are still pricing these homes well and in January there was a ten dollar per square foot savings, compared to the cost of all homes sold. When we apply that price difference to a 2500 square foot home it represents a $ 25,000 savings, something worth considering when selecting a home.

The data follows: