Some House Hunters Finding Sacramento 'Buyer's Market' Tough To Crack

SACRAMENTO (CBS13) - In this supposed "buyer's market," purchasing a home in Sacramento is suddenly no easy deal. The inventory for homes on the market has become so low, particularly in the low end, it's leaving hopeful homeowners rejected.

The market isn't exactly laying out the welcome mat for 23-year-old Brent Lim.

"It's a little frustrating, a little discouraging. But you have to keep at it," he said.

He's looking to buy his first home. But so far he's been rejected.

"I've put in about four offers on different houses, and a lot of them are getting rejected because it's not over the asking price," he said on Tuesday.

One home just hit the market Tuesday. Despite the downpour, Lim's real estate agent saw seeing plenty of competition.

"I'm the third one that's here at this house in 25 minutes, so I guess it's hot," said Lyon Real Estate agent Barbara Frago.

According to a company called TrendGraphics, the Sacramento region has just a small fraction of inventory on the market now compared to a year ago.

Buyers could choose from 4,500 homes in February of 2011. Now that number is just 816.

Sacramento State business Dean Sanjay Varshney says more buyers, less construction, and foreclosures are all playing a role in the trend.

Banks are keeping what they call a phantom inventory - foreclosed homes not yet released to buyers.

"What we see on the market is actually an illusion really," Varshney said. "It's not that by the way we have very few homes for sale, it's just that given the dynamics we are seeing low inventory levels, but that could change very quickly."

In Sacramento the door to homeownership may be open right now, but people like Brent Lim will tell you getting in is no lock.

"The competition is very high out there," he said.