We’re soon going to be entering the hot summer months and many are wondering if we will continue to see an equally hot housing market. Our Folsom mortgage lender team makes it a point to keep an eye on the market so that we can share trends, insights, and forecasts for the months ahead.
Housing Market for May 2021
Folsom
Current home values in Folsom average around $679K, which is up 19.6% from this time last year. The average price per square foot is $329, up 12.6% from last year. A lot of homes have been selling for 4.4% over their listing price and spend around 6 days on the market. We’re still seeing multiple offers on homes and hot homes getting snapped up in 5 days 8% over their listing price. it’s definitely a competitive hot seller’s market. Many experts feel that there will be a rise in the average listing price of a home over the next 12 months by 1.92%.
Fair Oaks
In nearby Fair Oaks, there is a 3.5% rise in sales prices to $585K compared to last year. Per square foot, prices are at $310, up 21.8% from last year. Homes are getting 3.9% over their asking price and staying on the market an average of 7 days. This is another area where homes are getting multiple offers and it remains a very hot seller’s market.
Orangevale
Things are a bit cooler over in Orangevale, but the market still remains a seller’s market. The average sale price here is $480K, up 0.5% from this time last year. The average price per square foot is $308, up 12.0% from last year. Some homes are getting 4.7% over their asking price and new listings get snapped up within 5 days.
Sacramento County
Looking at the county, the average sales price for homes is around $475K, up 20.6% from this time last year. Realtors have been seeing a fluctuation in housing demand as a result of an influx of people looking to move out of the Bay Area. There are a lot of people looking to buy but the inventory can’t keep up with the demand, making it a hot seller’s market for the county as a whole. The area has seen a 70% rise in people moving from San Francisco into Sacramento County since the start of the pandemic last year.
Looking Ahead
It’s a great time for sellers to put their homes on the market, however, they may find it hard to find a new home in the county with it being so competitive, which means having to look outside of the area for a home. We are moving into the peak of the home-buying season and all trends are pointing to a continued hot seller’s market through the summer.
Some experts are predicting that home sale volume with start to slow down over the next few months, as a result of a record number of job losses from the pandemic. The recession in jobs may keep a lot of potential sellers waiting on the sidelines until things become more balanced. With no end in sight to the imbalance between demand and inventory right now, it is a wait-and-see situation for sellers and buyers alike.
Buyers can still take advantage of low interest rates. A 30-year fixed mortgage has an average interest rate between 2.5% and 2.9% for a $760K loan. Refinances are getting rates around 1.75% to 2.5% on a 15 year refinance. This will change though depending on your overall credit score and history. If you want to know more about what mortgage rates are available to you, give our Folsom mortgage lender team a call today!