In California we continue going through a challenging market slump that some call a normalizing market. Some areas of the country, like Florida and parts of Nevada are experiencing the same adjustment. But one must remember that these areas experienced a very high appreciation in the past few years unlike any time in history, and history shows this adjustment was expected and will prove to be healthy for the overall market, in fact we may be seeing the beginning signs of progress.

The problem facing us now is the issue of inventory (supply and demand). To regain a stabling market value we must reduce the inventory of houses. Fresno reports record sales of homes. This is a direct cause from falling prices do to foreclosures and bank owned properties. As the inventory of homes drop, prices will start to stabilize.

One of the main reasons for the drop in housing prices is the increasing number of foreclosures and bank owned homes coming on the market. The dark side is that there is no sign of this market going away anytime soon, as the foreclosure crisis continues to affect more homeowners every month.

For the buyer, it’s a great time to buy and invest in the real estate market. For the seller, it may not be as bad as some say, take away the foreclosures and bank owned homes and you’ll find that the decline in the value of your home may not be as drastic as you think.