Folsom home buyers paid less than they did a year ago this fall, even as sellers set higher asking prices. The median sale price fell 3.0% year-over-year to $741,984 in the three months ending October 2026, down from $765,000 in the same period of 2025, according to newly released data from Redfin. Over the same period, the median list price rose to $789,261 from $735,000, which widened the gap between what sellers asked and what homes sold for.

Prices and buyer costs

The decline in Folsom’s median sale price was not matched on a per-square-foot basis. The median price per square foot slipped only 0.7%, to $372 from $375 a year earlier. Because that measure adjusts for home size, the smaller change suggests that part of the drop in the headline median reflects a shift toward smaller or lower-priced homes among this fall’s sales, rather than a broad cut in values.

Homes sold, on average, for slightly less than their asking price. The sale-to-list ratio was 98.9%. Still, 25.2% of homes sold above list price, up from 19.0% a year earlier. That combination points to a split market. Well-priced homes still drew competing offers, while many others closed below their asking prices.

Lower prices did not make homes cheaper to finance. The 30-year fixed mortgage rate averaged 7.33% in October 2026, according to Freddie Mac data compiled by the Federal Reserve. That was up from 6.86% in September and 6.25% in October 2025. As a result, the monthly principal and interest payment on a median-priced Folsom home with 20% down came to $4,082. That is $313 more per month than a year ago, when the comparable payment was $3,768.

The payment now equals 35.0% of the city’s median monthly household income. The U.S. Census Bureau puts Folsom’s median household income at $139,804, and at current prices a median-priced home costs 5.3 times that amount. A ratio above 5 is generally considered a sign of stretched affordability.

Sales and supply

Sales volume barely changed from a year earlier. Folsom recorded 215 home sales in the three months ending October, compared with 216 in the same period of 2025, a 0.5% decline. Supply grew slightly. Active inventory rose 1.7% to 429 listings from 422, and new listings increased to 244 from 235.

Homes sold at about the same speed as a year ago. The median time on market was 33 days, down 2.9% from 34 days in fall 2025. In practical terms, homes found buyers about a day faster.

Supply remains limited despite the modest rise in listings. With 429 active listings and 215 sales during the period, Folsom had about 2.0 months of supply. That level is generally considered a sellers’ market, since buyers have relatively few homes to choose from at any given time. Falling prices, a sale-to-list ratio below 100% and rising borrowing costs suggest that buyers had somewhat more room to negotiate than that figure alone would imply.

Folsom’s population reached 95,680 as of January 2026, up 2.1% from a year earlier, according to the California Department of Finance. Steady growth of that kind adds to underlying housing demand in a city of roughly 35,800 housing units.

Recent momentum

Compared with the three months ending September 2026, the market slowed in ways that are typical for autumn. Sales fell 8.5% to 215 from 235, and new listings dropped to 244 from 259. Median days on market rose 6.5% to 33 from 31, so homes took about two days longer to sell. Inventory edged up 0.9% to 429 from 425. The median sale price was essentially flat, rising 0.3% from $740,000.

Taken together, these month-over-month changes match the usual seasonal cooling after the spring and summer buying season. They do not on their own indicate a sharper shift in the market.

The longer view

Over a longer period, Folsom prices have changed little. The current median of $741,984 is close to the $737,000 recorded in the three months ending October 2024. Over the past five years, the median has risen just 3.4%, from $717,500 in fall 2021.

The pace of sales has changed far more. In fall 2021, the median Folsom home sold in 8 days. Two years ago it took 26 days, and in this period it took 33. Inventory has also grown over that span, from 362 active listings in fall 2021 to 405 in fall 2024 and 429 now.

Folsom’s year-over-year price decline also ran against the national trend. The S&P/Case-Shiller U.S. National Home Price Index showed home prices nationally were higher than a year earlier.