My daughter Jenny wants to come home. 

After years living near Pismo Beach, one of our favorite family vacation spots, she wants to be closer to her family and friends. I’m all for it, particularly since she’ll be bringing my 3 grandsons with her. The problem is, she’s handcuffed… to her house. 


You see, Jenny is among the nearly 60% of American homeowners who have mortgage rates below 4% interest. 78% of homeowners are below 5% interest. Like Jenny, these homeowners find themselves locked in, or wearing ‘golden handcuffs’. 

Some of the things that motivate people to move; downsizing, upsizing, wanting to live in a different community, divorce, and more, are all still happening, but many homeowners are staying put, unwilling, or unable to buy at today’s rates, which according to the Mortgage Daily News, sit a 6.67% nationwide.  


A recent report in the Wall Street Journal cited cases where some divorcing couples remained together in their homes, although in separate bedrooms, rather than give up their low-interest mortgages. 

As a result, inventory is down. Way down. It was only a few years ago, in 2020, when we Realtors were crying the low inventory blues, as the number of listings dropped below 100. Today, there are 44 resale homes for sale in Folsom


At the same time, we have many buyers who are ready, willing, and able to buy homes at today’s rates, but they don’t have many choices. What happens when the supply doesn’t meet the demand? That’s right, prices rise. 


After peaking at $390 in May 2022, Folsom housing prices dropped to an average of $337 per square foot by the end of that year, as buyers pulled back from the market, adopting a wait-and-see stance.  

It’s been a bumpy ride since, but with buyers now accepting the realities of the market and those 6% to 7% interest rates, they came back, and found themselves competing for what little they had to choose from, and prices rose. 


The average price per square foot for homes sold in Folsom so far this year is $367, and 65% of closed sales reported multiple offers. 

Now, with Fannie Mae and Freddie Mac predicting rates around 6% in the coming months, more buyers are expected to enter the market, and without more inventory, prices should rise accordingly. 

I do think that some of those homeowners who have been handcuffed to their properties are going to give in to their motivations and start listing their homes.  

The owners who are outgrowing their homes, and really need that extra space (or extra bathroom), the empty nester who is tired of cleaning a big house and climbing the stairs every night on creaky knees, the divorcing couple who are reminded every day why they broke up, they’ll suck it up and make their moves. 

As for Jenny, her 2.75% mortgage won’t mean much if it keeps her from getting back to her roots, her family, and friends.  

She’s ready to make her move. Now, if only I could find her a home.

Steve Heard is a Realtor with EXP Realty of Northern California Inc. He is a 23 year resident of Folsom and a member of the Board of Directors of the Folsom Chamber of Commerce and a supporting contributor to Folsom Times. Contact him at 916 718-9577 or – DRE#01368503