New-home sales dropped 27.8 percent in July compared to July 2006, the California Building Industry Association reported today, and new single-family sales fell 20.3 percent, with median new-home prices dropping 4.8 percent and median new single-family home prices falling 8.6 percent.
Eleven of 29 regions in California had double-digit percentage declines in median new-home prices in July compared to July 2006, according to the latest CBIA/Hanley Wood Market Intelligence New Home Sales and Pricing Report, with data not available for three regions.
And 10 of 29 regions had double-digit-percentage drops in the median price of new single-family homes in July 2007 compared to the same month last year, with data unavailable for four regions, according to the report.
Among those markets with 100 or more home sales for all types of new housing in July 2007, median prices for all home types dropped 13.2 percent in the Sacramento area, 12.6 percent in the Fresno area, 11.5 percent in the Los Angeles-Long Beach-Glendale area and 10.4 percent in the Stockton area.
Among markets with 100 or more new single-family sales in July 2007, median prices dropped 27.6 percent in the Los Angeles-Long-Beach-Glendale area, 12 percent in the Stockton area and 10.8 percent in the Fresno area, according to the report.
The overall new-home median price jumped 18.7 percent in the Santa Ana-Anaheim-Irvine area in July 2007 compared to July 2006, while the single-family new-home median price fell 9.3 percent.
New-home sales for all housing types dropped in 16 of 29 market regions year-over-year in July 2007, with data not available for three market areas. And single-family new-home sales dropped in 13 of 29 markets, with data not available for four market areas.
Among markets with more than 100 sales of all new-home types in July 2007, sales plummeted 53.6 percent in Stockton, 47.3 percent in the San Diego-Carlsbad-San Marcos area, 39.7 percent in the Santa Ana-Anaheim-Irvine area, 39 percent in the Riverside-San Bernardino-Ontario area, and 36.5 percent in the San Jose-Sunnyvale-Santa Clara area compared to July 2006. New-home sales rose 30.7 percent in the Visalia-Porterville area and 16.6 percent in the Fresno area.
Among markets with 100 or more new single-family home sales in July 2007, sales dropped 51.5 percent in the Stockton area compared to July 2006, 36 percent in the Riverside-San Bernardino-Ontario area and 22.5 percent in the Sacramento area, while sales rose 28.5 percent in the Visalia-Porterville area and 15.5 percent in the Oakland-Fremont-Hayward area.
Steve Smiley, a consulting director for Hanley Wood Market Intelligence, said in a statement, “Home builders are doing everything they can to move their inventory, but the demand for concessions and incentives in this down market makes staying profitable a significant obstacle. With the recent tightening of credit standards, it’s made an already challenging situation that much more difficult.”
The California Building Industry Association trade group represents about 7,000 businesses, including home builders, remodelers, subcontractors, architects, engineers, designers and other building-industry professionals.
| Metro Area | New Home Sales | Median Prices |
| |||
|
| 6-Jul | 7-Jul | % change | 6-Jul | 7-Jul | % change |
| Statewide | 6,915 | 4,990 | -27.8% | 440,990 | 419,990 | -4.8% |
| Bakersfield | 228 | 199 | -12.7% | 310,990 | 287,990 | -7.4% |
| Chico | 25 | 15 | -40.0% | 325,000 | 339,000 | 4.3% |
| El Centro | 78 | 62 | -20.5% | 291,990 | 309,990 | 6.2% |
| Fresno | 235 | 274 | 16.6% | 325,900 | 284,900 | -12.6% |
| Hanford/Corcoran | 33 | 23 | -30.3% | 289,400 | 305,000 | 5.4% |
| L.A./Long Beach/Glendale | 719 | 586 | -18.5% | 507,990 | 449,715 | -11.5% |
| Madera | 46 | 50 | 8.7% | 326,990 | 249,000 | -23.9% |
| Merced | 52 | 65 | 25.0% | 395,990 | 288,990 | -27.0% |
| Modesto | 101 | 94 | -6.9% | 448,990 | 399,990 | -10.9% |
| Napa | 3 | 9 | 200.0% | 832,900 | 681,522 | -18.2% |
| Oakland/Fremont/Hayward | 474 | 415 | -12.4% | 575,990 | 640,000 | 11.1% |
| Oxnard/1000 Oaks/Ventura | 153 | 96 | -37.3% | 639,990 | 619,500 | -3.2% |
| Redding | – | – | – | – | – | – |
| Riverside/San Bern./Ontario | 1927 | 1175 | -39.0% | 428,990 | 415,000 | -3.3% |
| Sacramento | 727 | 470 | -35.4% | 454,950 | 394,990 | -13.2% |
| Salinas | 14 | 38 | 171.4% | 610,333 | 484,900 | -20.6% |
| San Diego/Crlsbad/San Marcos | 945 | 498 | -47.3% | 424,900 | 459,990 | 8.3% |
| S.F./San Mateo/Redwood City | 45 | 99 | 120.0% | 765,000 | 815,880 | 6.7% |
| San Jose/Sunnyvale/Sta Clara | 208 | 132 | -36.5% | 660,000 | 693,990 | 5.2% |
| San Luis Obispo/Paso Robles | – | – | – | – | – | – |
| Santa Ana/Anaheim/Irvine | 307 | 185 | -39.7% | 591,990 | 702,405 | 18.7% |
| Sta Barbara/Sta Maria/Goleta | – | – | – | – | – | – |
| Santa Cruz/Watsonville | 9 | 12 | 33.3% | 499,000 | 389,000 | -22.0% |
| Santa Rosa/Petaluma | 19 | 37 | 94.7% | 618,950 | 509,990 | -17.6% |
| Stockton | 222 | 103 | -53.6% | 502,500 | 449,990 | -10.4% |
| Vallejo/Fairfield | 121 | 73 | -39.7% | 481,999 | 552,000 | 14.5% |
| Visalia/Porterville | 137 | 179 | 30.7% | 292,990 | 280,990 | -4.1% |
| Yuba City/Marysville | 79 | 96 | 21.5% | 349,020 | 327,990 | -6.0% |
| Other (Colusa/Glenn) | 8 | 5 | -37.5% | 244,950 | 340,900 | 39.2% |
Source: CBIA/Hanley Wood Market Intelligence New Home Sales and Pricing Report
