Business Journal: Home Demand Still Strong

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(Sacramento, CA)
Tuesday, August 2, 2005

Landowners in the region have nearly 30% more houses, condos and apartments in process this year. It stands near 100,000 dwelling units - up from about 75,000.

It’s a sign of their confidence that homebuilding professionals believe home sales and prices won’t collapse. It’s also fueled by previously reluctant landowners coming off the bench, wanting to cash in while prices are at record highs. Housing lots and raw land suitable for homes are commanding twice the price of several years ago.

New home sales in the Sacramento region slowed 10% during the first half of 2005, compared to a year earlier. But builders see continuing strong demand.