Oops Prices Falling Again....

"Sonoma County home prices fell in November for the fifth consecutive month, although there are signs more buyers are testing the market."

"The county's monthly median price began to fall in July as the housing downturn took hold following an eight-year run of record sales and price increases. The succession of monthly price declines is the longest since prices dropped over a six-month period from September 1993 through February 1994."

Does anyone remember the realtor windbag that said prices would not come down? The one who said that even during the last downturn prices only declined about 4%?

"At that time, the county was reeling from a recession. Now, fewer buyers can purchase homes in a region where affordability long has been a problem. While recent price declines and lower interest rates have reduced mortgage payments, many homes remain too costly and buyers are cautious."

"Falling prices and lower interest rates are drawing more buyers into the market. But one barometer shows that more buyers are backing out of sales agreements in search of better deals."

"One measure of buyers' unease is the number of sales they back out of before a deal is closed. In November, 39 percent of the sales that had been pending the end of October were not completed. The fallout rate so far this year is 30 percent, compared with about 25 percent last year."

"Sonoma County homes take more than three months to sell on average, compared with two months a year ago. Given the sluggish pace, the supply of homes for sale is sticking at levels not seen since the last downturn more than a decade ago."

"Several economic forecasts call for home prices to continue falling into early next year. "