Doug Reynolds, a Sacramento Area Realtor, discusses supply and demand. During the worst times of the bubble burst in Sacramento, the inventory was up to 14.2 months in 2007. Due to the extremely high supply and low demand the prices dropped 35% in 2008 alone. On the flip side, in December 2012 the inventory fell to 0.7 months, due to high demand and low supply. That drove up the values 45% in 2013.