Surge in Sacramento-Area New Home Sales Were the Highest in 16 YearsFeb 24, 2021 12:00AM ● By North State Building Association
SACRAMENTO REGION, CA (MPG) - A total of 729 new homes were sold during January in the greater Sacramento region, the highest number since 2005, the North State BIA reported.
Mike LaFortune, senior development director for Easton Development and the BIA's 2021 Chairman, said January was the eighth month in a row with sales higher than the previous year and shows demand for new homes in the region remains unabated.
"Sacramento-area residents are taking advantage of extremely low interest rates and new home designs that meet the needs for working at home and online learning, and we also continue to see a steady stream of prospective buyers coming from the Bay Area as more companies are committing to allowing employees to work from home," LaFortune said. "As more new designs hit the market to meet those needs even better, we expect the strong new home market will continue for some time."
But while new floorplans are being offered, the number of new homes actually being built remains well below current demand, let alone the number needed to begin attacking the shortfall in new homes that the region has experienced for many years, warned Michael Strech, the BIA's President & CEO.
"While single-family construction ramped up in December across our region, for the year housing starts were actually slightly lower than in 2019 with 7,328 permits issued, according to the just-released report from the Construction Industry Research Board. That's just slightly higher than the number of new homes sold during the year," Strech said.
"In the long run, to meet the need for housing and maintain affordability we will need to continue a steady pace of building, which will require cooperation from our local officials to approve new communities and issue building permits. Fortunately, most local officials understand the need for more housing but it's an issue we will be watching closely in the years to come."
The North State BIA is the leading advocate for the home building industry in the greater Sacramento region. Representing more than 500 members who provide 55,000 industry jobs, the North State BIA is committed to preserving and furthering the economic interests of its members, while also working to enhance the industry's standing as a significant contributor to the regional economy. For more information, visit www.northstatebia.org.