New Home Sales Drop

Elk Grove and Natomas were not the only communities where new home sales have declined. The trend is everywhere. The Commerce Department reported national sales of new homes fell in November 11.2 percent from October. It was the largest drop for a single month in 12 years.
Builders have been adjusting to the decreased demand by dropping prices. The average selling price of a new home last month fell 4.1 percent.
Regionally the largest decline in sales was in the West where November’s new home sales dropped 22 percent. It was the largest decline seen since February of 1994.
Builders are still expecting 2005 to be a good year for new construction but anticipate a 6 percent decline 2006. The median price of a new home across the country is $225,200. In Natomas and Elk Grove the median price is twice that amount.