Sean McSweeney is with the Truckee-based research company. He points out that this is the first spring and summer home buying season without any tax credit incentive.
"The tax credits ended last year but since then we've seen the REO saturation rate, which is the proportion of homes that are in foreclosure selling on the market, grow by about 10% in the Sacramento markets which have pushed home prices down 10% in Sacramento and about 5% in Stockton."
McSweeney says Sacramento and Stockton area home prices are at record lows…down to where they were back in 2001.
Even though home sales traditionally pick-up in the spring and summer, McSweeny projects further price declines in the coming months because the inventory of bank-owned properties is so high.