New home sales fall hard in region
New home sales were down during the fourth quarter all over the Capital Region. So was the median new home price.
In El Dorado County new home sales were off 76 percent from the same quarter a year ago. In Placer County sales were off 58 percent and in Sacramento County new home sales were down 56 percent. The Gregory Group that keeps track of new home sales activity found only 1,569 homes sold during the last three months of the year. It was the slowest quarter since they began tracking monthly sales in 1999.
The median price of a new home in the region dropped slightly to $456,619 from the previous quarter but sales prices were still 19 percent above the median last year. In addition to incentives builders are finally dropping their prices. It was a good sign for buyers but a sign of caution for those involved in the construction industry.
Look for builders to back off building homes priced over $600,000. Builders will shift price ranges in order to attract more first time buyers. More emphasis will be placed on building on smaller homes on smaller lots along with the recent trend for condos, townhouses and patio homes.
Now is an excellent time for buyers to make a deal on a new home. However, don’t visit the new development without your agent.
In El Dorado County new home sales were off 76 percent from the same quarter a year ago. In Placer County sales were off 58 percent and in Sacramento County new home sales were down 56 percent. The Gregory Group that keeps track of new home sales activity found only 1,569 homes sold during the last three months of the year. It was the slowest quarter since they began tracking monthly sales in 1999.
The median price of a new home in the region dropped slightly to $456,619 from the previous quarter but sales prices were still 19 percent above the median last year. In addition to incentives builders are finally dropping their prices. It was a good sign for buyers but a sign of caution for those involved in the construction industry.
Look for builders to back off building homes priced over $600,000. Builders will shift price ranges in order to attract more first time buyers. More emphasis will be placed on building on smaller homes on smaller lots along with the recent trend for condos, townhouses and patio homes.
Now is an excellent time for buyers to make a deal on a new home. However, don’t visit the new development without your agent.
posted by Ken Calhoon at 10:16 AM
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