November 8, 2019
October home sales figures are out, and the data shows that we’ve seen a rise in home sales, while inventory is falling.
A reduction in inventory is no surprise, as this is the time of year when all but the most motivated sellers adopt the ‘wait til next year’ attitude. I think home owners have been conditioned to believe ‘no one buys’ at this time of year.
While it is true that there are typically fewer sales at this time of year, as kids are back in school, the days grow shorter, the weather (usually) cools, and our attention turns toward the holidays, it is also true that people buy homes all year round.
This is because the events that drive home purchases are less related to weather and holidays and more to need and desire.
Relocations and other life events don’t take the winter off, and neither should you.
For buyers, while there are fewer homes on the market now, there are fewer buyers to compete with, and with sellers needing to sell, this is when we typically see some bargains, and sellers willing to negotiate, or at least price their homes right for the market.
So, let’s get into specifics.
80 Folsom homes were sold in October, compared with 64 for the same month last year. Taking a broader look, 245 Folsom homes were sold over the past 3 months, compared to 215 for the same period a year ago.
What’s driving the uptick? In addition to relocations and life events, buyers have been conditioned to believe that this is the best time to shop, and with rates near historic lows, those homes are more affordable.
A year ago an article published by Zillow stated that our strong economic growth would ‘…change in 2019, as the 30-year, fixed rate mortgage reaches 5.8 percent – territory not seen since the dark days of 2008.’
Sounded scary, right?
Well, the opposite happened. Rates started dropping, and today’s national average 30 year fixed mortgage can be had for 3.69%.
This is all good news for buyers, but is it bad news for sellers?
Not necessarily. If you price your home right, in any market, you will sell it quickly.
Looking at November sales, it took an average of 41 days to sell a home in Folsom. That’s the highest number since January.
Taking a deeper look, of the 80 homes sold in November, 34 sold in 9 days or less, averaging 5 days on market. 24 of those sold at or above their listed price.
If you were to ask the sellers of those homes, they’d likely tell you that the market it is a red hot seller’s market.
The remain homes took an average of 59 days to sell, and for an average of $11,581 less than listed price. If you ask those sellers, what would they tell you? That we’re in the winter doldrums and had to practically give their homes away?
The reality is that they priced their homes too high.
As for inventory, as mentioned, it typically does fall at this time of year. We have 104 Folsom homes for sale today (plus 11 condos), compared to 120 last month, but nearly the same as a year ago.
Wrapping it up, if you are a buyer, you can take advantage of today’s low interest rates, and maybe find your dream home at a decent price.
If you are a seller, price your home right for the market and the condition of your home, and you’ll sell it quickly.
Any questions? Need help? Drop me a line at 916 718 9577.
For a list of open houses in Folsom this weekend, click here.
Steve Heard is a Realtor with EXP Realty, and owner of MyFolsom.com
Reach Steve at [email protected] or 916 718 9577.