New Home Sales in Sacramento Region
Posted by carolyn in Sacramento Real Estate Market on December 06th, 2011
One of the hardest hit areas of the housing downturn has been new home builders. In the past 5 years many large corparate builders have gone out of business, declared bankruptcy or have been forced to scale back operations. The bee recently reported Sacramento area new home sales were the lowest reported since the 1950′s. In 2010 there were 2,363 down from close to 16,000 a year during the last real estatee boom of 2004-2006. 
In the market we have experienced in the past few years it has often cost less to buy a distressed property – with plenty of newer homes to chose from than the builder’s cost of construction. Builders have not been able to compete in many sub markets. With an unknown number of future foreclosures still looming and with over 40% of all mortgage holders in the region underwater on their homes it is likely to be a while before the remaining builders see some relief. Some of the higher priced areas such as Granite Bay are seeing some increase as buyers from the Bay Area have shown some interest.
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