Yes homes in Turlock are selling. Homes all over the area are selling, not just in Turlock. More and more first time buyers are stepping up and buying. 
This home pictured here I listed on Friday June 1, 2008. After being on the MLs for a total of 3 hours I had my first offer. By Monday morning I had 3 very good offers. We are now in escrow and the buyers are thrilled.
The statistics from Metrolist MLS prove that homes in Turlock are selling. In May of 06 48 homes sold and in May of 07 49 homes sold in Turlock. In May of 08 65 homes sold in Turlock. This had been a trend since February.
In May of 07 there were 56 homes under contract (pendings) and in May of 08 there were 98 homes under contract.
In May of 07 the average price of the homes sold in Turlock was $344,418. In May of 08 the average price of the homes sold in Turlock was $242,338. Lots of people that had no chance of buying a home 2 or 3 years ago are now able to qualify to buy a home.

What's driving the current market and makes all of the headlines are the bank owned homes. With the large supply of bank owned homes in Turlock the right home for you might just be out there. Many of the bank owned homes that are priced right and are in good condition are only lasting a few days on the market and are getting multiple offers.
Click on this link to search for homes in Turlock . If you have been thinking about buying your first home or first investment home or any other home in Turlock Ca , now just might be the time for you to do it.
Good luck in your search!
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We're seeing the same thing in Sacramento. It's a good market right now, especially for homes under $250,000. Of course, it also means I have to sell twice as many. :) But that's OK. A little extra hard work doesn't kill anybody.
Elizabeth- I too am going to have to sell more to make up for the price drop, but I'm well on my way. Thanks for the comment.
That is great news for Stanislaus and San Joaquin Counties. At least the inventory is moving even though the prices have dropped.
I hope things are still going well. How about an update post. Happy New year.
Terry Miller