New-Home Sales Continue Their Sluggish Pace In August, CBIA Announces
SACRAMENTO, CA – October 12, 2009 – (RealEstateRama) — New home sales in California remained at historic low levels in August signaling that the state’s housing sector may be slow to recover from a stubborn recession. The California Building Industry Association reported today that sales in new-home communities of 10 units or more, though better than July’s steep decline, were 13 percent below August 2008.
“While there are some encouraging signs in California housing markets, activity remains low,” said CBIA President and CEO Liz Snow. “These reports are evidence that housing markets remain depressed and continue to hamper a broader economic recovery in California.”
The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New-Home Sales and Pricing Report showed that during August, 2,617 new homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 3,001 in August 2008. Sales of single family homes were down by 20 percent, while sales of townhomes and “plexes” – duplexes, triplexes, etc. – were down 35 percent and sales of condominiums were 26 percent higher than a year ago.
Snow encouraged the Governor and the Legislature to take a serious look at ways to revive the state’s housing sector which has proven time and time again to be a prolific job generator and an historic leader of economic recovery.
“Job creation is critical to an economic recovery and there’s no better way to create jobs than reviving new-home construction,” said Snow. “Inventories have been steadily dropping since early last year to the point now where they’re at seriously low levels. Meanwhile, unemployed workers are sitting on the sidelines waiting for recovery.”
Snow said the homebuyer tax credit, enacted earlier this year, ended too soon and should be revived.
“The best thing you can say about California’s experience with the state homebuyer tax credit is that it worked,” said Snow. “It did everything it was supposed to do: restore buyer confidence; stimulate activity in dormant housing markets; and put people back to work. Today’s report should encourage lawmakers to revive the program.”
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The California Building Industry Association is a statewide trade association representing thousands of homebuilders, remodelers, subcontractors, architects, engineers, designers, and other industry professionals. More information is available on the Association’s Web site, www.cbia.org.
Hanley Wood Market Intelligence is the housing industry’s leading provider of rich data and consulting services on residential real estate development and new-home construction and is a division of Hanley Wood, LLC, the premier media company serving housing and construction. More information is available on the company’s Web site, www.hanleywood.com/hwmi or by calling 1-800-639-3777.
Hanley Wood Market Intelligence (HWMI) collects data from new for-sale production subdivisions of 10 units or more on a monthly basis. HWMI Net Sales represent sales contracts signed during the period indicated minus any reported cancellations. Median and Average Prices are based upon the minimum asking price of the plans sold during the period and do not include the cost of any lot/view premiums or upgrades. Because this data is collected monthly and based upon sales contracts that represent future closings, HWMI data is the most forward-looking data source available for new home information in the state of California.
Media Contact:
Michael Castillo
Communications Manager
(916) 443-7933 ext. 346
mcastillo (at) cbia (dot) org
