REO (BANK OWNED) HOME SALES DATA FOR FOLSOM, CA –MARCH 2010

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

There were 14 REO homes sold in February, up from the in February.  The days-on-market increased to 54, up from 53 the previous month, the third monthly increase in a row.  Three of the 14 were on the market for wall over 100 days, indicating that there were condition problems with those homes.  In March, 36% of the bank owned homes sold in less than two weeks, this despite the low inventory. Bank owned homes in good condition and priced well sell very quickly.   

The 14 homes sold represent 20% 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 remain very low.  We have only a 2.8 month inventory at present.  There has only been one month with more than a four month inventory since March of 2009. There is only a 1.8 month inventory of REO homes available. A neutral market is considered a 6 month inventory.  So, we are looking at a seller’s market.

The cost per square foot of REO homes in January dropped to $ 162, down from $ 175 the previous month.  The cost per square foot of all homes sold in January decreased to $ 177, down from $ 180 the previous month.      

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% savings for REO buyers, a little less than normal.  

The overall sales price for REO homes was 101.5% of the final asking price.  A full 58% of the buyers paid more than the asking price for their bank owned home.  The banks are still pricing these homes well and in March there was a $ 15 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 $ 37,500 savings, something worth considering when selecting a home.

The data follows: