BANK OWNED (FORECLOSURE) HOME SALES DATA FOR FOLSOM, CA–DEC 2011
BANK OWNED (FORECLOSURE) HOME SALES DATA FOR FOLSOM, CA – DECEMBER 2011
This is the latest monthly report of a four-year study of bank owned (REO) home sales in Folsom, CA. This report covers December 2011.
There were 16 REO homes sold in Folsom this month, up from 12 the previous month.
The average days-on-market increased from 49 the previous month to 67 in December. Two of the homes had been on the market for over 200 days and two others had been on the market for over 100 days. Obviously, some of the old inventory was cleared out. However, 38% of the homes that sold were on the market for two weeks or less, proving once again that well priced homes in good condition sell quickly.
The 16 REO homes that sold represent 23% of all homes sold in Folsom this month. The very low bank owned home inventory is one reason for this statistic.
The available inventory of bank owned homes in Folsom dropped to a 7-month supply, the lowest inventory level of bank owned homes in the past 15 months. The inventory for bank owned homes in Folsom peaked at a 2.8-month supply in January and has steadily declined since. The available inventory for ALL homes available decreased to a 1.6-month supply, down from a 2-month supply the previous month. Pundits tell us that a 6-month supply is neutral market, so Folsom remains a strong seller’s market for both bank owned homes and all other homes on the market.
The average cost-per-square-foot for bank owned homes was $ 141 in December, unchanged from November. The average cost-per-square-foot for ALL homes sold in Folsom in December was $ 157, up one dollar from the previous month. It has been moving within a narrow range for the past year.
The overall sales price for REO homes was 96.50% of the final asking price and 89.38% of the original asking price. Both of these numbers are lower than usual. The 89.38% number is a reflection of the banks ability to judge the true market value of their “toxic assets.” They did not do well on those homes sold in December. In addition, only 32% of the buyers paid the asking price, or more, for their bank owned homes in December. That too is lower than usual.
Based on the cost-per-square-foot statistic, bank owned homebuyers paid 10% less for their home than did buyers of non-bank owned homes in December. When we apply that to a 2500 square foot home, it represents a savings of $ 40,000: a considerable savings.
If you have any questions about purchasing a home in Folsom, a Folsom REO, or an REO anywhere in the area, feel free to give us a call (916) 337-0658.
The Data Follows:
BANK OWNED (REO) HOME SALES DATA FOR FOLSOM, CA – NOVEMBER 2011
BANK OWNED (REO) HOME SALES DATA FOR FOLSOM, CA – NOVEMBER 2011
This is the latest monthly report of a four-year study of bank owned (REO) home sales in Folsom, CA. This report covers November 2011.
There were 12 REO homes sold in Folsom this month, one less than sold the previous month.
The average days-on-market increased from 45 the previous month to 49 in November. Only one of the homes had been on the market for more than 100 days. However, 17% of the homes that sold were on the market for two weeks or less, a smaller segment than normal.
The 12 REO homes that sold represent only 14% of all homes sold in Folsom this month, here too a smaller segment than normal. The very low bank owned home inventory is a primary reason for this statistic.
The available inventory of bank owned homes in Folsom rose to a 1.2-month supply. The inventory for bank owned homes in Folsom has not exceeded a two-month supply since February of this year. The available inventory for ALL homes available decreased to a 2.1-month supply, down from a 2.4-month supply the previous month. Pundits tell us that a 6-month supply is neutral market, so Folsom remains a strong seller’s market for both bank owned homes and all other homes on the market.
The average cost-per-square-foot for bank owned homes was $ 141 in November, down from $ 153 the previous month. The average cost-per-square-foot for ALL homes sold in Folsom in November was $ 156 for the second month in a row. It was $157 in September and $155 in August.
The overall sales price for REO homes was 99.21% of the final asking price and 95.30% of the original asking price. In addition, a full 59% of the buyers paid the asking price, or more, for their bank owned homes in November.
REO buyers paid 91% (or fifteen dollars per square foot) of the cost-per-square-foot for their bank owned home when compared with the cost-per-square-foot for ALL homes sold in November. When applied to a 2500 square foot home, that represents a savings of $ 37,500: a considerable savings.
If you have any questions about purchasing a home in Folsom, a Folsom REO, or an REO anywhere in the area, feel free to give us a call (916) 337-0658.
The data follows:
How can I get the best deal on a home? Where do I start? Part 6
How can I get the best deal on a home? Where do I start? Part 6
If you have had the patience to read through the previous posts in this thread, many of which go into great detail about loans, you now have an idea of what to expect and the long term impact the decisions you are about to make will have on your future. There is an old saying, “forewarned is forearmed.”
REO Property Update
It may be a good time to discuss some aspects of the current market for our local area. Bank Owned properties (REOs) are a significant segment of that market. At least 25 percent of the homes sold in the past year have been REOs. They are properties that have gone through foreclosure. The bank now owns them and puts them on the market for resale. The banks are not in the real estate business by design and they would like to clear these “toxic assets” off their books.
However, the banks are just like any other seller. They want to get as much as they can for each property. Observing the activity, the asset managers seem to be as vulnerable to poor decision making as are individuals who sell their own homes. REOs often come on the market over priced. When they sit on the market without receiving offers, the asset managers then reduce the prices and the properties do eventually sell.
Over 25% of the REO properties in pending sale status (properties for which a purchase price has been agreed upon by the buyer and seller and are waiting for the buyer to complete their inspections and wait for lenders to process and fund loans) were on the market for FOURTEEN days or less. So, well priced homes in good condition sell quickly.
Historical data shows that REO properties consistently sell for a lower price per square foot than do all properties that sell, usually by five to ten percent. That fact coupled with buyer perception that REOs are the best deal on the market creates an interesting dynamic. Buyers frequently find themselves in multiple offer situations (an undesirable position for a buyer) when placing offers on REO properties. Buyers find that if they really want a property the have to submit an offer OVER the asking price. The banks want to create a bidding atmosphere, increasing the selling price considerably.
The perception that a buyer could pick up an REO property for fifty to sixty percent of the asking price was always a pipe dream. In today’s market the myth has evaporated completely. My four year long study of REO sales in El Dorado Hills and Folsom, CA clearly shows that it is difficult to get any bank to lower their price more than 5% of the asking price. It does happen in rare instances but it is more common for an REO to sell at, or over the asking price.
If one views the data with perspective, a five percent reduction in asking price still represents a significant savings. The key is not to let emotion take control and pay above market price for any REO property.
Also remember that REOs are sold AS/IS. The buyer usually has to pay for their own inspections and repairs. The only thing the bank usually guarantees is a clear title to the property—an important issue.
Of course, each property is unique. Each has to be studied individually. Once you find a property that you like, you should ask your Realtor to do extensive research. When you decide to make an offer you should know about as much about the property as possible. Understand what the market value of the property is and do not offer more than that market value.
There are a lot of excellent buys out there. You just have to expend the effort to find them and decide on the one which meets you needs and wants.
To review the latest Bank Owned Home Sales Data for El Dorado Hills, Ca select this link:
http://www.ByuYourVilla.com/blog/page/4/
Of course, I would be pleased to help you find that ONE. Just give me a call. (916) 337-0658
Stay tuned for part 7.
BANK OWNED (REO) HOME SALED DATA FOR FOLSOM, CA -OCT 2011
BANK OWNED (REO) HOME SALES DATA FOR FOLSOM, CA – OCTOBER 2011
This is the latest monthly report of a four-year study of bank owned (REO) home sales in Folsom, CA. This report covers October 2011.
There were 13 REO homes sold in Folsom this month, one less than sold the previous month.
The average days-on-market decreased markedly from 70 the previous month to 45 in October. That September statistic appears to be an anomaly in the normal trend. Only one of the homes had been on the market for more than 100 days, in fact it had been on the market for 231 days, skewing the reported days-on-market figure. However, 23% of the homes that sold were on the market for two weeks or less, proving that well priced homes in good condition are still selling quickly.
The 13 REO homes that sold represent only 21% of all homes sold in Folsom this month, a smaller segment than normal. The very low bank owned home inventory is a primary reason for this statistic.
The available inventory of REO homes in Folsom dipped to a .9-month supply. The inventory for bank owned homes in Folsom has not exceeded a one-month supply for four consecutive months and has not exceeded a two- month since February of this year. The available inventory for ALL homes available increased to a 2.5-month supply, up from a 1.8-month supply the previous month. Pundits tell us that a 6-month supply is neutral market, so Folsom remains a strong seller’s market for both bank owned homes and all other homes on the market.
The average cost-per-square-foot for REO homes was $ 151 in October, down one dollar from the previous month. The average cost-per-square-foot for ALL homes sold in Folsom in October was $ 156, also down one dollar from the previous month.
The overall sales price for REO homes was 98.63% of the final asking price. In addition, a full 47% of the buyers paid the asking price, or more, for their REO homes in October.
REO buyers paid 97% (or five dollars per square foot) of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for ALL homes sold in October. When applied to a 2500 square foot home, that represents a savings of $ 12,500: a considerable savings.
If you have any questions about purchasing a home in Folsom, a Folsom REO, or an REO anywhere in the area, feel free to give us a call (916) 337-0658.
The data follows:
BANK OWNED(REO) HOME SALES DATA FOR FOLSOM, CA–SEPT. 2011
BANK OWNED (REO) HOME SALES DATA FOR EL DORADO HILLS, CA – SEPTEMBER 2011
This is the latest monthly report of a nearly four-year study of bank owned home sales in El Dorado Hills, CA. This report covers September 2011.
There were 15 REO homes sold in El Dorado Hills in September, three more than sold the previous month.
The average days on market dropped from 36 in August to 36 in September. Only one of the homes had been on the market for over 100 days. A full 60% of the homes that sold were on the market for two weeks or less. Well-priced homes in good condition are still selling quickly.
The 15 Bank Owned homes that sold represent only 26% of ALL homes sold in El Dorado Hills this month.
The available inventory of bank owned homes in El Dorado Hills increased from a 1.5-month supply the previous month to a 1.6-month supply in September. That inventory level has not been over a 2-month supply any month this year, with the exception of February, when it was at a 2.7-month supply. The available inventory for ALL homes increased from a 3.5-month supply the previous month to a 4.2-month supply in September. Pundits advise that a 6-month supply is a neutral market, so we are still looking at a seller’s market for ALL homes in El Dorado Hills.
The average cost-per-square-foot for Bank Owned homes was $ 136 in September, up from $ 133 the previous month. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in September increased to $ 152, up from $ 148 the previous month.
The overall sales price for REO homes was 101.1% of the final asking price and 98.6% of the original asking price. Yet 60% of the buyers paid the full asking price or more for their REO homes in September. Apparently, these homes were well priced and buyers decided to take advantage of low prices and excellent mortgage interest rates.
REO buyers paid 90% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for ALL homes sold in September. That is a $ 16 pre-square-foot savings. When applied to a 2500 square foot home that represents a savings of $ 40,000, a considerable sum. Most buyers would consider that sufficient reason to accept the fact that REO buyers must relinquish some of the rights they have when buying a home in a normal sale.
If you have any questions about purchasing any home in El Dorado Hills, an El Dorado Hills Bank Owned Home, or a Bank Owned Home anywhere in the area, feel free to give us a call (916) 337-0658.
The data follows:
