Uh-oh Sacramento: Sales of new homes plunge - Canceled deals push November rate to the lowest level since September 2001

Some people, including trolls visiting this site (so obviously tied to the real estate industrial complex) still say "there's no bubble - no need to worry - prices only go up and up and up".

How much data, how many stories, how much economic reality do these folks need in order to understand what is currently underway?

It's here folks. Locally, regionally, nationally - where a housing bubble existed, the housing bubble has burst. The only question now is how far will we go down - to get back to where we should be. It's the natural and only conclusion of a mania, panic or bubble. Tulip bulbs one year, .com stocks a bit ago, and houses now. It's just humans being human.

Sales of new homes fell again in November to their lowest level since September 2001 as builders continued to be hammered by canceled deals, the local Building Industry Association reported Wednesday.

A separate analysis of sales during the six weeks ending Nov. 15 shows a particularly sharp decline in new homes sold in West Sacramento and Lincoln. Both are areas where prices have zoomed in recent years to levels that analysts said might not prove sustainable.

"Some local markets appear to be overvalued, and in those markets there may be some price adjustments to bring sales and pricing back in line," said analyst Greg Paquin of the Gregory Group, a Folsom-based real estate data and consulting firm. "In other markets, it may already be in line, but we're not projecting significant price increases over the next year or two."