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

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

This is a continuation of a three plus year study of Bank Owned home sales in Folsom, CA. This report covers REO homes sold in December 2010.

There were 19 REO homes sold in December, up from 15 in November. Lenders continue to release these homes for sale at a very slow pace in order to avoid causing major problems in the housing market. A glut of low priced homes would be catastrophic to an already shaky market.

The average days-on-market statistic for the month was 64, up sharply from 46 the previous month. Five of the REO homes sold had been on the market over 100 days. Four or 21% of the REO homes sold had been on the market for two weeks or less.

The 19 REO homes sold represent 30% of all homes sold in Folsom this month.

The overall home inventory in Folsom decreased to a 3.9 month supply, down from the 4.1 month supply reported for the previous month. This is the lowest available supply since June. The inventory for REO homes in December was a 2.5 month supply, up slightly from a 2.1 month supply in November and well within the normal range. This is still a seller's market. A six month supply is considered a neutral market.

The average cost per square foot of REO homes sold in December increased one dollar to $ 154 while the cost per square foot for ALL homes sold increased two dollars to $ 166. These numbers have been moving in a narrow range for well over a year with no marked upward or downward trend.

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 6% savings for REO buyers. That is a slight decrease from 7% reported for the previous month.

The overall sales price for REO homes was 97.4% of the final asking price, within the normal range. And only three or 16% the buyers paid more than the asking price for their bank owned home in December; a smaller percentage than normal. There was a $ 10 dollar per square foot savings in the purchase of REO homes, 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.

If you have any questions about purchasing a Folsom REO or an REO anywhere in the area, or are just looking for the best buys available feel free to call us at (916) 337-0658.

The data follows: