4.6% Decline in Median Sale Price since August Peak

A more extensive article appeared in the Sacramento Bee today. The paper reports that Sacramento County experienced a 4.6% decline in median sale price since the August peak. The article also includes information about median sale prices in other counties and examines December's shrinking inventory.

On home prices:

The market gave mixed signals on home prices: The median sale price fell for the fourth consecutive month in Sacramento County, to $355,000, marking a 4.6 percent decline from a peak of $372,000 in August, DataQuick said. Yolo County saw its median price decline slightly last month, to $410,000, from the November level. But Placer and El Dorado counties saw small gains in their median resale prices, to $485,000 and $455,000, respectively. Experts are divided over what the four- month decline in Sacramento County means. Some view it as evidence that home values are falling across the board. Others say the decline would have to continue into the spring to know for sure...

...[M]ost do see Sacramento's market losing steam. They predict modest, if any, price appreciation over the next year or two. Evidence is mounting that home values are dipping a bit in some areas, especially for ones priced over $500,000.

On inventory:

Sales of existing homes in the capital region fell by as much as 31 percent in December compared with a year ago, but the market also showed signs that it's beginning to right itself. The inventory of homes on the market dropped 21 percent over the past two months, to 8,525 homes as of Dec. 31, reports TrendGraphix, a local real estate data firm. Fewer homes on the market means less competition for sellers and less choice for buyers...

The big question is whether the recent decline in the number of homes for sale marks the beginning of a sustained tightening trend. One possibility is that it was simply the result of sellers pulling their homes off the market for the holidays in hopes of a stronger market in the new year...

Veteran Sacramento agent Carlos Kozlowski of Coldwell Banker chalked up much of the inventory decline to investors cashing out here to re-invest elsewhere.