Where will it go?

Inventory of is edging up in the Sacramento area. As of March 26, according to the website HousingTracker, the number of homes on the market in Sacramento increased by 390 to 14,163. This represents a 5.9 percent increase in the past month and 4.5 percent growth over where we were three months ago. The good news is the median asking price is remaining at or near $400,000 with the most recent numbers down from the previous week to $395,950. We are clearly in the spring selling season and as long as we don’t see any significant price erosion I think we will continue to see offers being made and contracts closing.

Over at Sacramento Real Estate Statistics the author is a bit more pessimistic or optimistic depending on how you want to Sacramento real estate market to perform. He had this to say:

Looks like the spring selling season has officially begun, and it's off to a
fast start. Late March 2007 inventory is higher than mid-May 2006 levels. Both
Agent Bubble and I predict inventory could top 20,000 listings this summer. (At
this rate of increase, we will hit that number by late June or early July. One
week doesn’t make a trend, however.)

Please note that although both of the sites above report on inventory levels, each use different data sources and geographic areas to develop their numbers so they are not directly comparable.