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FOLSOM RANCH REAL ESTATE MARKET UPDATE

― AHRASH ZAMANIAN ―

The first quarter of 2025 has revealed a cooling trend in both the resale and rental markets, while builders ramp up efforts to move inventory quickly. Here's an overview of the key trends shaping the real estate landscape.

Seller Trends

The market has seen an increase in listings driven by factors like layoffs, return-to-office mandates, and relocations. As a result:

- Most homes are receiving only 1–2 offers.

- Homes are selling below asking price.

- The average time on the market is 29 days.

- Price reductions are common before properties go under contract.

Sellers must adopt strategies that emphasize value to navigate these conditions effectively.

Buyer Trends

Local renters, families looking to upsize, and those moving into the Folsom school district make up the most active buyer groups. Current buyer preferences include:

- Downstairs bedrooms and full bathrooms.

- Move-in ready homes with landscaped yards.

- Larger lots and unique resale features, such as pools or scenic views.

Buyers remain cautious but know exactly what they’re looking for.

New Construction Trends

Builders are working hard to offload standing inventory, offering rate buy-downs but withholding appliance packages.

- March saw 31 new homes close—up slightly from February's 28.

- Homes over 3,000 sq. ft. are in high demand due to limited options in this category.

- Most quick move-in homes lack backyard landscaping and require additional upgrades.

Builders are adapting to the demand for larger spaces while contending with inventory challenges.

Rental Market Trends

The Folsom Ranch rental market is grappling with an oversupply of available properties.

- Over 40 active rentals are currently sitting on the market.

- Many newer homes that previously leased quickly are now experiencing slower demand.

- Renters have become more selective, prompting some landlords to lower rents.

- This slowdown is leading certain investors to pivot strategies or consider selling properties.

The rental market's saturation is creating challenges for investors and landlords alike.

The Bottom Line

Across the board—resales, new builds, and rentals—strategy is critical. Buyers are cautious yet ready to act. Sellers need to prioritize value, while investors navigate the pressures of an oversaturated market. Adapting to these shifts will be key in 2025’s evolving real estate landscape.

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