The pace of Folsom’s housing market shifted abruptly in March. The typical home that sold spent just 13 days on the market, down from 45 days in February and 16 days a year earlier, according to newly released data from Redfin. Nearly 38% of homes sold above their asking price, up from 22.6% in March 2025 — a sign that competition among buyers has intensified meaningfully heading into spring.
Prices edge higher as buyers move quickly
The median sale price in Folsom reached $799,500 in March, up 3.2% from $775,000 a year earlier and 3.8% above February’s $770,000. Some of that month-over-month jump reflects normal spring seasonality, but the year-over-year gain points to genuine upward pressure on prices in this city of roughly 92,600 residents, whose population grew 4.0% over the past year.
Notably, the median price per square foot held essentially flat at $368, statistically unchanged from a year ago. That suggests the higher median sale price is being driven more by the mix of homes selling — likely larger or higher-end properties — than by across-the-board appreciation. Compared with March 2024, when the median sat at $759,750, prices have risen modestly over two years. Over five years, since March 2021, Folsom’s median sale price is up 23.0%.
Statewide, California’s median sale price rose just 0.7% year-over-year to $855,300, meaning Folsom’s prices climbed faster than the state average, even as the city’s median remains below California’s overall figure. Nationally, the S&P/Case-Shiller index was essentially flat year-over-year in March.
Sales and inventory both expand
Sixty-six homes changed hands in Folsom in March, a 24.5% increase from the 53 sold in March 2025 and up 6.5% from February. New listings rose to 120, compared with 102 a year earlier, and active inventory climbed to 138 homes — 15.0% more than last March and 22.1% above February.
That additional supply hasn’t tilted the balance toward buyers, however. With 66 homes selling against 138 active listings, Folsom has just 2.1 months of supply, well within sellers’-market territory. Roughly 62% of homes went off the market within two weeks. By comparison, California as a whole saw a median of 37 days on market in March, nearly three times Folsom’s pace.
Mortgage rates ease, trimming monthly costs
The average 30-year fixed mortgage rate was 6.18% in March, down from 6.65% a year earlier but slightly above February’s 6.05%, according to Freddie Mac data published by the Federal Reserve. The 15-year fixed averaged 5.55%.
Combined with Folsom’s price gains, the rate decline has actually lowered monthly carrying costs modestly. The principal-and-interest payment on a median-priced Folsom home with 20% down now runs about $3,909 a month — $71 less than a year ago, when higher rates more than offset lower prices.
Affordability remains stretched nonetheless. At $799,500, the median home costs roughly 5.7 times Folsom’s median household income of $139,804, according to the U.S. Census Bureau’s 2024 American Community Survey. The estimated mortgage payment consumes about 33.6% of median household monthly income — within reach for many local households, but at the upper end of what lenders and housing economists generally consider sustainable.
Pricing discipline still matters
Even with the faster pace of sales, not every Folsom listing is finding a quick buyer. About 24.6% of active listings had a price cut in March, almost identical to the 24.2% rate a year earlier. The sale-to-list ratio sat at 99.8%, meaning the typical home sold just under its final asking price.
That mix — strong demand for well-priced homes alongside steady price reductions on listings that miss the mark — suggests that while Folsom has clearly tilted back toward sellers this spring, buyers are still pushing back on listings they view as overpriced. The 71% drop in median days on market from February to March is partly seasonal, but combined with the year-over-year jump in sales volume and the rise in homes selling above asking, it points to a market that has firmed up notably since the start of the year.