Folsom Real Estate Market Update: What Buyers and Sellers Need to Know

by Anna Kalashnikova

The Folsom real estate market continues to show strength and resilience, offering opportunities for both buyers and sellers. Whether you’re looking to buy your first home or sell your current property, understanding the latest trends is key to making informed decisions. Here’s a breakdown of what’s happening in the Folsom market this month.

Current Market Snapshot

Median List Price: $806,000
Market Action Index (MAI): 56 (up from 53 last month)
Price Per Square Foot: 375 last month but slightly below $397 in February 2023)
Active Listings: 69 (down from a mid-October peak of 119 but comparable to February 2023’s 66 listings)

The Folsom market remains a strong seller’s market, with the MAI indicating high demand. While the median list price has dipped slightly from $849,000 a year ago, this doesn’t necessarily signal a decline in home values. Instead, it reflects an increase in the availability of more affordable housing options—a promising trend for first-time buyers.

Key Trends to Watch

Inventory Tightens Further
The number of active listings has dropped to just 69, down significantly from the mid-October peak of 119. This low inventory level is similar to February 2023, when there were 66 listings. With fewer homes on the market, competition among buyers remains fierce.
Homes Are Selling Faster
On average, homes are spending 77 days on the market, compared to 86 days a year ago. This faster pace highlights the continued demand in the area.
Price Adjustments Remain Steady
About 38% of properties have seen price decreases, consistent with last year’s numbers. Additionally, the price per square foot is nearly identical to a year ago, indicating stability in pricing.

What’s Happening with Mortgage Rates?

Mortgage rates have been a hot topic lately, and recent economic data has caused some fluctuations. Here’s what’s driving the changes:

Consumer Price Index (CPI): The latest CPI data showed a faster-than-expected rise in consumer inflation, pushing rates to one-month highs initially.
Producer Price Index (PPI): The PPI, which tracks wholesale-level changes, suggested potential easing in future consumer prices, offering some relief.
Retail Sales Report: A significant decline in consumer spending further supported a downward trend in rates.

As a result, mortgage rates have dropped to their lowest levels in two months. According to Freddie Mac, the average rates are now:

30-Year Fixed Rate Mortgage: 6.85%
15-Year Fixed Rate Mortgage: 6.04%

These slightly easing rates are encouraging for buyers, making it a good time to enter the market.

What Does This Mean for Buyers and Sellers?

For Sellers

The Folsom market remains highly favorable for sellers. With a high Market Action Index and low inventory levels, demand for homes is strong. Homes are selling faster than last year, and the price per square foot remains steady, giving sellers confidence in maintaining competitive pricing. If you’re considering listing your property, now is an excellent time to take advantage of these conditions.

For Buyers

While the market is competitive, there’s good news for buyers, especially first-time homebuyers. The increase in more affordable housing options is a positive development. However, with limited inventory, acting quickly and being prepared is crucial. Getting preapproved for a mortgage is more important than ever, as it gives you a clear understanding of your budget and strengthens your position in a competitive market.

Final Thoughts

The Folsom real estate market is dynamic and offers opportunities for both buyers and sellers. Sellers can benefit from high demand and low inventory, while buyers can take advantage of slightly lower mortgage rates and more affordable housing options. Whether you’re buying or selling, having a solid strategy and working with a knowledgeable real estate professional is essential to navigating this market successfully.

Ready to Make Your Move?

If you’re looking to buy or sell in Folsom, now is the time to act. Contact me today to discuss your goals and create a plan to make you competitive in today’s market. For buyers, I can help you get preapproved and guide you through the process of finding your dream home. For sellers, I’ll help you maximize your property’s value and ensure a smooth transaction.