Business Journal: Home Sales Dropped
New home sales dropped by more than half during the first quarter, compared to a year ago.
Thursday, April 6, 2006
Homebuilders in the 6-county Sacramento region sold a little more than 2,000 new homes during the first quarter of this year. But in ’05, they sold 4,800. That’s a 57% drop. Rising home prices, higher interest rates, and the weather are cited as factors. Builders are giving more incentives. The average concession was over $10,000 … where it was just $3,600 a year ago. New construction is down as well, as measured by building permits. On the other hand, new home sales were up by a third from the last part of 2005. Analysts still believe it’s a soft landing.