Sales of existing homes in Sacramento dropped 14% in April from the month prior, and were down 38% from April 2005. The California Association of Realtors also reports that the median price is about the same for Sacramento as a year earlier. In Sacramento, a home is on the market 42 days before selling, compared to 28 days last spring.
Mortgage rates are an increasing factor. Freddie Mac reports that the 30-year, fixed rate mortgage now carries an interest rate of 6.6%, the highest since June, 2002. They also note that fewer houses are going into construction nationally.