Business Journal: New Home Sales Keep Falling

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(Sacramento, CA)
Tuesday, January 13, 2009
New-home sales dropped to the lowest level in a decade, and possibly much longer, according to a recent report. New homebuilders sold 705 homes in the fourth quarter last year – or about one home per month for every new-home subdivision in the six-county region. The current figure is about 500 fewer homes than the third quarter and much lower than the 1,300 homes that sold a year ago, according to The Gregory Group which has been tracking new-home sales since 1999. Of course, with slow sales come lower prices, as homebuilders attempt to lure shoppers. The median home price dropped to $343,000, that’s about $45,000 less than a year ago, and $90,000 lower than the final quarter in 2006. Homebuilders have also been cutting back on projects, with only 1,700 homes on the market – about 2,200 fewer than two years ago.