REAL ESTATE-Folsom,CA Bank Owned (REO) Home Sales Data – January 2010

Folsom, CA REO (BANK OWNED) SALES DATA FOR JANUARY 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 January 2010.

There were 10 Bank Owned homes sold in January, down from 19 in December.  The 47.4% decrease reflects, in part, the normal seasonal decrease in home sales.  The days-on-market increased to 46, up markedly from 31 the previous month.  In January, only one home sold in less than two weeks, that 10% is the lowest since we have been reporting these figures.  This is a significant change from the norm and may just be a one month statistical anomaly.   

The 10 homes sold represent only 19.3% of all homes sold in Folsom, a much lower number than normal.  There are far fewer Bank Owned homes available on the market and short sale homes are having an impact.

The overall home inventory in Folsom continues to drop and we have only a 3.3 month inventory at present.  The inventory in December of 2009 was 2.2 months, the lowest inventory in Folsom for the period we have been reporting these figures.  The Folsom inventory has grown slowly since then.  This indicates that a strong seller’s market continues.  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 reduced inventory continues to have an impact on prices.  The price per square foot for all homes sold in Folsom over the past fifteen waffles between $ 189 and $ 172.     

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:

Select this link for archived posts providing the past data for over two years.