The latest figures show sales fell 40% over the past three months, the largest drop in about 15 years.
But Dennis Rogers - Senior Vice President of the Northern California Building Industry Association – says it’s too early to tell if this is the start of a trend. "Over the last three years we’ve had three of the strongest years that we ever had in the Sacramento region and we’ve had appreciation rates of above 20% each of the last three years and that’s an unsustainable market. Really what we see happening is a return to normalcy. You’re going to see normal price appreciation and normal sales volumes."
Rogers says one possible reason for the dip in sales is higher mortgage rates.