The Sacramento Real Estate Market is Leaning Toward a Neutral Market

I mean to post this graph a couple days ago because it shows exactly how far inventory has dropped in Sacramento. This shows there are 3.7 months of inventory in July, which means it would take less than four months to sell every home presently for sale. Typically, it's a seller's market when there are more buyers than sellers and inventory dwindles to a couple months. It's a buyer's market when there are more sellers than buyers and inventory exceeds 6 months, give or take. Neutral markets exist between 3 and 6 months of inventory.

If you're wondering about whether Sacramento's real estate market is hot, cold or neutral, just look at where we were and the inventory available as of July. We moved from a high of 14.3 months of inventory in September of last year down to 3.7 months in July of 2008. Prices have fallen, which is bringing more buyers and investors back to the market. If this trend continues, our buyer's market could be a thing of the past.

I don't know about you, but I'd be happy to see a neutral market for a while.

Graph: Trendgraphix