Second Quarter New Home Sales
The Gregory Group, has their corporate headquarters in Folsom. They are an information service company. They collect data from the building industry and then sell it back to the individual builders. Builders use the information to make decisions about the number of homes to build, how their competition is doing and even design features. Last Friday the Gregory Group reported home builders had sold 1,788 new homes in the Capital region during the second quarter of this year. The number was a 33 percent decline from the first quarter of this year and 1,336 fewer new unit sales than were sold during the same quarter in 2006.
The average selling price of a new home sale in the region during the third quarter was $444,233 or 11 percent below last year and about the same as it was for the second quarter of 2004.
El Dorado County reported only 29 new home sales for the period. The average price was $768,000 and 2 percent higher than a year earlier. Placer County had 515 for the three- month period with an average price tag of $512,000 declining 5% from last year. Sacramento County reported 868 new home sales averaging $414,000 and an 11% decline in price.
Greg Paquin, President of the Gregory Group said about the low sales and high inventory “I think the expectation or hope now is that 2009 or late 2008, is when we’re going to come out of this thing.”
One reason it is a little slow out there for builders is all the existing homes for sale. The region currently has 14,700 existing homes on the market. “I honestly think it’s more than 50 percent psychological,” said Dean Wehril a research executive with Sullivan Group Real Estate Advisors. “People are thinking, Why not see if I can get a better deal in six months. It’s almost a cliché, but it’s a lack of urgency. “
The average selling price of a new home sale in the region during the third quarter was $444,233 or 11 percent below last year and about the same as it was for the second quarter of 2004.
El Dorado County reported only 29 new home sales for the period. The average price was $768,000 and 2 percent higher than a year earlier. Placer County had 515 for the three- month period with an average price tag of $512,000 declining 5% from last year. Sacramento County reported 868 new home sales averaging $414,000 and an 11% decline in price.
Greg Paquin, President of the Gregory Group said about the low sales and high inventory “I think the expectation or hope now is that 2009 or late 2008, is when we’re going to come out of this thing.”
One reason it is a little slow out there for builders is all the existing homes for sale. The region currently has 14,700 existing homes on the market. “I honestly think it’s more than 50 percent psychological,” said Dean Wehril a research executive with Sullivan Group Real Estate Advisors. “People are thinking, Why not see if I can get a better deal in six months. It’s almost a cliché, but it’s a lack of urgency. “
posted by Ken Calhoon at 8:24 AM
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