REO (BANK OWNED) SALES DATA FOR FOLSOM, CA MAY -2009

FOLSOM, CA REO (BANK OWNED) SALES DATA FOR MAY 2009

This is a continuation of my monthly report on Bank Owned home sales data for Folsom, CA. This report covers REO homes sold in May of 2009.

There were fourteen REO homes sold in May, down from the eighteen in April. The average days-on-market dropped from 63 in April to 42 in May, so REO homes sold more quickly. In May there was only one REO home that had been on the market for over 100 days. There are usually many more. Also, 28.6% of the REO homes sold in fourteen days or less, indicating that well priced homes sell quickly.

The fourteen homes sold represent only 24.6% of all homes sold in Folsom in May, down from 30.5% in April and 50.0% in March.

The cost per square foot in May INCREASED to $ 172, up from $ 168 in April. However the average cost per square foot of all homes sold in May remained $ 184. That is two months in a row. Could we be at the bottom of the market in Folsom? This equates to a 6.5% savings for those who purchased an REO home in May. The savings in April was 8.7%.

The overall sales price for REO homes was 97.4% of the final asking price. This data proves once again that an expectation of buying a Bank Owned home for fifty cents on the dollar remains a pipe dream. Unfortunately, some self-proclaimed experts may still be preaching about 50% savings to the gullible. The actual, measurable savings is the difference in cost per square foot between REO homes sold and the cost per square foot of all home sold: in May, $12 per square foot. That is a $ 30,000 savings on a 2500 square foot home, not a small sum.

Specific data follows: