When will it get better?

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John is correct. Markets are very local and some are performing well and some are in the tank. Here in So Cal, if you segment the market by price; the higher end has seen prices holding up well while at the low end there are almost no sales taking place. If you segment the market by location, within a few miles there are communities with over 15 months of unsold inventory and others with fewer than 3 months.

Incidentally, because the low end of the market is not functioning, all of the reports you read about median prices in a given area being up while sales have been down dramatically are extremely misleading. The prices are only up because the bottom of the market is broken. I’m seeing asking prices that have declined by 20% or more in some areas. Once the low end starts to sell again the reported median prices will plummet but in actuality the market will have begun to improve.