Going Down….

Since the week of August 27, according to HousingTracker, inventory has dropped from 18,844 to 18,007 for the week ending October 15. Although not falling as much as some of us would like to see it is clear we have reached our peak high for the year and should see declining inventory until we get into the March/April timeframe of 2008. The drop in the past seven weeks is 837 homes or 4.4 percent.

During the same period the median asking price has continued to fall. At August 27 it stood at $375,000 for homes in the Sacramento area. As of October 15 it had fallen, $16,000 to $359,000 at 4.3 percent decline. In the past month, alone, according to HousingTracker, the median price has declined 2.9 percent. This compares to a three month number of 7.7 percent and a six month number of 10.2 percent.

Normally we would expect to see a slowing of the falling prices as inventory declines, however; with the increasing number of foreclosures and short sales combined with the tightening mortgage loan requirements it may be some time before we see prices firm up.

This has been a busy and fun week at our new company, MagnumOne Realty. We are working on our new website, changing out “For Sale” signs, ordering business cards and generally just getting our name out there. On Friday evening we will be sponsoring a raffle at the Fall Carnival for Mikie’s elementary school. If you have some free time and are in the area, stop by, it is really a nice family event.