I've defined homes up to 1800 Square feet in size as homes generally purchased by first time home buyers. This report includes all resale homes listed on MLS less than or equal to 1800 square feet and sold in Folsom. The chart below represents single family home sales trend broken down into three categories. Short Sales, Bank Owned (REO) and other (sold by a private party). 

Influencing the Real Estate Market

The Federal Government has stepped in to take over the Fannie Mae and Freddie Mac. There are a number of scenarios describing what the outcome of this action will look like. It is way too early for anyone to know the exact outcome. Interest rates did take a small dip with the news of the takeover of Fannie Mae and Freddie Mac. This week the headlines are full of Lehman and AIG. We will have to wait for things to settle out.

 The Folsom market for first time home buyers is smaller than the area in general. Privately owned homes still represent the largest number of sales. And a larger percentage of short sales are actually closing. The number of sales in Folsom last month is higher than the January 2008 low but still less than the peak months in 2007.