Home Prices in Folsom

Asked by Jason, Folsom, CA Sun Mar 10, 2013

I am seeing many new condos/houses are being built around Folsom..Will it put a break on price increase or reduce home price little bit in near future?

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Brianne Mull…, , Folsom, CA
Mon Mar 11, 2013
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I am taking a Real Estate class in college right now and the building of new condos/houses in Folsom might reduce the price of the older condos/houses around the area in the near future.
0 votes
justchat1985, Home Buyer, Folsom, CA
Mon Mar 11, 2013
I am individual home buyer like you..looking for Condo or single family home..I see whole lot of new condos are under construction now in El dorado hills just next exit on HWY 50 from folsom.. and they will be available in this summer 2013..So, according to me, the price of Condos should reduce in near future when all these new condos are available...right now condos prices are increasing because they are not much available in Market..But I think that will not be true for single family homes
1 vote
Sue Archer R…, Agent, Palm Harbor, FL
Wed Apr 3, 2013
It's still a factor of simple economics. Supply and demand. Low mortgage rates and the affordability of these homes, allbeit condos or single family homes (that are actually separate markets). As there was a period of almost 4-5 years of no new construction, we're behind in new home inventory.

Our inventory currently does not meet demand so the prices will go up. Multiple offers are common and the offers are well over comparable sold prices. I don't foresee a break in price increases until such time that mortgage rates begin to rise, and there is alot more inventory.
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Jeff Marr, Mortgage Broker Or Lender, Roseville, CA
Sun Mar 17, 2013
Jason - if condos in our area carried the same desirability factor as single family homes, then I might buy into this assessment, but that's simply not the case. Add to this the many extra lending hurdles that come with condos that don't exist with SFRs (litigation/occupany ratio requirements/insurance reserves/HOA default percentages), making most condos unfinanceable, now you have 2 large strikes against condos..

With the SFRs that are being built, most of these are high density projects done on zero lot lines, so they're also not as desireable as traditional homes constructed sizable yards....

I completely agree with Morgan about the highway 50 development....Folsom is starving for housing inventory, and these homes may help in this regard....but since it appears we're at least several years away, possibly more, from completing this development, and our current inventory levels are so low, the rollout of these homes most likely won't slow down home pricing increases!

best of luck, and let me know if I can be of further service to you!

Jeff M
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Michelle Tho…, Agent, El Dorado Hills, CA
Tue Mar 12, 2013
We have a huge line of buyers with little inventory to buy. I only see prices going up...
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Morgan Larson, Agent, Folsom, CA
Sun Mar 10, 2013
Great question Jason. It does seem that adding new homes and condos would slow the price increases we've seen in Folsom over the past year. However, as Dena mentioned, single family homes are where it's at. Most people would like a yard and a relatively large home. Thus, until growth occurs south of 50, I don't foresee new homes slowing down the price increases. What may happen in the next few years, when people begin to feel more comfortable selling, is a more balanced market and a plateau in prices.

Are you looking to purchase a home? I'd love to answer more questions via phone or email. Contact me any time.

Thanks!
Morgan
916-241-8788
Morgan@morganlarson.com
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Dena Koureme…, Other Pro, Folsom, CA
Sun Mar 10, 2013
New construction and resale are closely related in most cases, and past markets have taught us that new home sales tend to help spur resale when there is not an overwhelming number of new dwellings for sale.

Folsom will not be "flooded" with new construction again until the south-of-50 corridor begins to take off. Even then, location will be everything and I believe the older parts of Folsom and especially single-family homes will go up in value because what is planned there are multifamily, small lot homes and attached dwellings. From what I have heard, there is little to no single-family zoning left in Folsom proper, and this is still considered to be one of the premiere suburban communities.

I hope this has helped. I am a Folsom homeowner, and despite my buying at a slightly higher market in 2007, the values in my neighborhood are slowly rising once again. Let's keep our fingers crossed!
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