Mike West

EL DORADO HILLS, CA REO (BANK OWNED) SALES DATA FOR MAY 2009

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

There were nineteen REO homes sold in May, two more than sold in April. The average days-on-market increased significantly to 119 days, up from 84 days in April. Several old inventory homes were cleared out in May; one had been on the market for 420, days, one for 298 days, one for 255 days and seven others with more than 100 days on the market. Only 10.6 % of he homes sold had been on the market for less the fourteen days. That is the smallest percentage since I have been tracking REO sales.

The cost per square foot in May decreased to $ 133, down from $ 148 in April. The average cost per square foot of all homes sold in May decreased to $ 159, down from $ 164 in April. This equates to a 16.3% savings for those who purchased an REO home in May. The savings in April was 9.7%.

There were two REO homes of special interest. One sold for 54.48% of the original asking price, but 93.01% of the final asking price after being on the market for 255 days and many price reductions. The second sold for 57.28% of the original asking price, but 92.6% of the final asking price. It took 420 days and many price reductions to get an acceptable offer. Obviously, those sellers had misjudged the market and had to reduce the asking price significantly to move their inventory.

The overall sales price for REO homes was 94.7% 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, $ 26 per square foot.

That is a $ 65,000 savings on a 2500 square foot home, not a small sum. REO homes are still a burgeon in El Dorado Hills.

Specific Data follows:

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:

El Dorado Hills, CA REO (Bank Owned) Sales Data for April 2009.

For more than eighteen months I have been reporting REO sales data for Folsom and El Dorado Hills, CA. In 2009 I separated the two markets because they were becoming less similar with each passing month.

In April of 2009, there were seventeen REO properties sold in El Dorado Hills, two less than in March. The average days-on-market statistic increased to 84, up from 47 in March. There were five homes that took over 100 days to sell and one of them took 203 days. However, 23.6% of the REO homes sold in fourteen days or less, proving that well priced properties sell quickly in any market.

The seventeen REO homes sold represent 44.8% of all homes sold in El Dorado Hills in April, down from the 50.0% in March. That March number was a high in that category since I started reporting the REO sales data.

Another decline in the cost per square foot is reflected in the April numbers. The average cost per square foot of all REO homes sold was $ 148, down 3.9% from that in March. The average cost per square foot for all homes sold in April was $ 164. So, the REO home buyers paid 90.3% of that paid by the buyers of all homes sold in Folsom for the month. Most buyers would like a 9.7% savings on most anything.

The overall sales price for REO homes sold in April was 98% of the final asking price. This statistic remains fairly constant in the 90% - 100% range month after month. The concept of making an offer for

$ .50 or $ .60 on the dollar remains a pipe dream that some self proclaimed experts preach to gullible seminar participants all over the country. It simply does not work.

The specific data follows:

Folsom, CA REO (Bank Owned) Sales Data for April 2009.

For more than eighteen months I have been reporting REO sales data for Folsom and El Dorado Hills, CA. In 2009 I separated the two markets because they were becoming less similar with each passing month.

In April of 2009, there were eighteen REO properties sold in Folsom, exactly twice the number that sold in March. The average days-on-market statistic increased to 63, up from 47 in March. There were two properties that finally sold in April that had been on the market for 233 days and 254 days respectively. These two properties skewed the days-on-market statistic. However, 27.8% of the REO homes sold in fourteen days or less, proving that well priced properties sell quickly in any market.

The eighteen REO homes sold represent 30.5% of all homes sold in Folsom in April. This percentage is more in line with the historical data than was the 18% in March.

A significant decline in the cost per square foot is reflected in the April numbers. The average cost per square foot of all REO homes sold was $ 168, down 9.2% from that in March. The average cost per square foot for all homes sold in April was $ 184. So, the REO home buyers paid 91.3% of that paid by the buyers of all homes sold in Folsom for the month. Most buyers would like an 8.3% savings on most anything.

The overall sales price for REO homes sold in April was 96.6% of the final asking price. This statistic remains fairly constant month after month. The concept of making an offer for $ .50 or $ .60 on the dollar remains a pipe dream that some self proclaimed experts preach to gullible seminar participants all over the country. It simply does not work.

The specific data follows:

This post is a continuation of my monthly study of Bank Owned homes Sold in El Dorado Hills, CA. The El Dorado Hills market continues to track with the historic numbers that I have been monitoring for the past eighteen months or longer. Unlike the Folsom market. (For those of you unfamiliar with the area. Folsom is the next town down hill from El Dorado Hills.)

In March 19 REO home sold, a full 50% if the total of 38 homes sold, the largest percentage since I started this study. The cost-per-square-foot for REO home sold was $ 154, down two dollars. The cost-per-square-foot for all homes sold was $ 170, down one dollar from February. The trend of saving about 10% of thecost-per-square-foot by buying an REO property continues in El Dorado Hills.

The average days on market increased to 47, up from 38 in February. Five of the 19 properties sold were on the market for over 100 days. Note that 6 of the 19 REO homes that sold in March, sold for over $ 600,000.

The data follows: