Every now and then I make a prediction and I get it right. Back in May, I suggested that the price of a Sacramento County home could go down 5 to 10 percent in the nearterm. Well it looks like I was correct. The Sacramento Bee reports that the medium price of all homes sold in the County in July fell 5% from the previous July.The number of units sold declined 43%.

I guess a blind squirrel finds a nut once in a while. Unfortunately, I think further declines are likely to happen over the next twelve months. Look for another 5% decline from the median Sacramento County price of $361,000. Why? The affordability index is still out of whack, near an all time low. I will discuss this index in a future post.

Pierre Cutler
The Sacrameto Executive