Sacramento Real Estate Slowdown

The Sacramento Bee reports:

In another sign of a cooling market, existing homes sales in the capital region declined last month to the lowest level in five years.

Sales in January fell a combined 29 percent from the previous January in Sacramento, Placer, El Dorado and Yolo counties, setting the stage for a buyers' market, DataQuick Information Services reported Friday.

It was the slowest January since 2001.

At the same time, the median sale price dropped for the fifth straight month in Sacramento County to $352,500, a 5.2 percent decline from a peak of $372,000 in August last year. But the median price is still up 10 percent from a year ago.

The chill also was felt in Placer, El Dorado and Yolo counties, where price appreciation slowed dramatically from the 20-plus percent gains seen years ago. But the median price in those counties increased 5 to 13 percent in January.

"It was very, very quiet. On average, the days on the market are getting longer and longer," said Michael Lyons, head of Lyon Real Estate in Sacramento.

It appears the trend changed.