It's a buyer's market in Sacramento

The San Francisco Chronicle reports:

When Dan Wan and his wife, Sara, bought their home two years ago, they considered themselves lucky: They managed to snag it in a tight market by contacting the sales office just after another buyer canceled a deal.

But now they are looking for a larger home because their family of four has grown to five. After four months, they haven't gotten any offers for their home, despite dropping their price to $350,000 from $370,000.

The Wans are in a bind. They are not only competing against at least three other homeowners who want to sell their properties in the same subdivision -- they are also facing an aggressive marketing campaign by the builder of hundreds of houses just a few blocks away, where many are selling for less than $350,000.

Driving toward the Wans' home from Interstate 80, it seems like there are billboards on every street corner advertising new developments. Red and white flags beckon potential buyers to the 537-unit project built by Beazer Homes. On weekends, sign twirlers stand at busy intersections, flagging down cars and directing them to the new construction.

You'll want to read this whole article to find out about the amazing drop in prices on new homes in the Sacramento area.