At Lyon Real Estate we are fortunate to have exclusive rights in the Sacramento area to a tool developed by our company to collect and graph market statistics. The tool is called Trendgraphix. With Trendgraphix we can narrow the market down to certain areas, home sizes, and/or price ranges. The statistics are out for June 2007. I decided to look back not only to last year at this time but also to what the market was doing in June 2005. Here is what I found. I included both Sacramento and El Dorado counties to get a big picture, and also added some statistics for a few of the local areas I serve here in the Sierra Foothills.
Inventory doubled, at least, in all areas between 2005 and 2007, and sales fell drastically. It appears we didn't really feel the effects of the increase in inventory until 2007 when we see the big drop in price per square foot. With the increase in supply, buyers didn't face the pressure to "buy now or lose it". The market changed from a seller's market to a buyer's market. Sellers, anxious to sell their homes, have had to lower prices to meet buyer demands. Inventory has continued to rise but not at the rate it did between 2005 and 2006. How much more prices will drop is anyone's guess. With another unknown like interest rates in the mix buyers, sitting on the fence, will need to weigh what waiting for a further drop in home prices might cost them in a higher mortgage payment, not to mention losing a home they want to another buyer.
If you would like to have a Trendgraphix report for your area or specifics, please contact me as I would be happy to provide that to you.
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