“What you’re starting to see right now with the foreclosure inventory swelling is the banks are getting aggressive….. I think 2008 is going to be a year to remember.”
– Mike Toste, a Lincoln based real estate agent
On the front page of Friday’s Sacramento Bee was an article about December home sales. One number really jumped out at me: 38.3% of all home sales in the eight county Sacramento region in December were homes that had been repossessed by banks.
If that wasn’t enough, the median home price dropped 20% in Sacramento County and 13.3% in Placer County in 2007 – and are 27.6% and 29% off their August 2005 peaks, respectively. Total sales volume for the 8 county region was down about 23% from 2006.
Volumes are falling off a cliff even as prices crash. This means that, even at these lower levels, there still aren’t many buyers. That means prices will probably continue to fall in 2008.