Posted on 11/17/2005 6:21:49 AM PST by 2banana
Sales of new homes plummet
The 40% decline for 3-month period is sharpest in 15 years.
Sales of new homes in the Sacramento region dropped 40 percent over the past three months compared with the same period last year, according to the local Building Industry Association.
It's the sharpest decline the group has seen for the August-October period since 1989-1990, when sales plunged nearly twice as much - 79 percent.
...
Cancellations of pending home sales have spiked in recent months because more buyers, including investors, either got cold feet, couldn't qualify for a loan or couldn't sell another property fast enough, industry sources reported. Also, some builders insist they're strictly enforcing the anti-speculator clause in their sales contracts and will cancel deals if they learn a buyer is an investor, not a primary resident. In addition, lenders are beginning to scrutinize loan applications more closely, meaning some marginally qualified borrowers now find it more difficult to use the most aggressive, riskiest forms of financing.
...
In stark contrast to the frenzied market of the past few years, many Sacramento-area builders are now forced to offer incentives worth tens of thousands of dollars to attract buyers - especially for nearly built homes where an initial buyer has canceled the deal.
Builders have been using these increasingly lucrative incentives, such as $50,000 toward upgrades on higher-end homes, in lieu of lowering prices.
(Excerpt) Read more at sacbee.com ...
Sacramento. Houses in California are much costlier, and taxed to the hilt.
in the Sacramento region
Exactly as I predicted. Now . . . check EXISTING HOME SALES after CHRISTMAS, when they will go up dramatically, because the price of an existing home relatively to building a new home will be much better.
this is happening in all the high cost areas, not just in sacramento. this news is avaiable in any business paper if one cares to find it.
Bubble not popping....just readjusting to the local conditions.
An acquaintance of mine has a home in North Dakota....three bedroom, two bath. The home is worth $60,000. That same house in California would be triple the price, at least. In San Francisco, it would be one million. IN L.A. or Hawaii, London, Paris, MILLIONS.
Location, location, location.
Those new homes in Sacramento -- SOMETHING smells a little fishy. :o)
"Also, some builders insist they're strictly enforcing the anti-speculator clause in their sales contracts and will cancel deals if they learn a buyer is an investor, not a primary resident"
ANTI-SPECULATOR CLAUSE? What the heck is that? Is it now illegal in in California to speculate on real estate? or own rental property? No wonder people and companies like Nissan are leaving there.
Why now? Why stop offering these risky forms of financing now? If it was okay two months ago why not now?
Existing home sales are down just a little here.
Probably a regional thing, but this should be interesting to you.
Sacramento.
Not exactly a good barometer for the rest of the country.
Sales of new homes in the Sacramento are falling, which is a testament to how liberal government fails democracy.
Funny... Nationally sales were up sharply, and prices were up by an obscene amount.
They can buy eastern Kentucky with that much money.
With housing costs at about $500/sq ft in California, I cannot imagine why.</dry sarcasm>
>> Admin, please change this headline to include:
in the Sacramento region <<
I'll second this request. No need to start false rumors, since nationally home sales were up sharply and prices were up obscenely
Same thing here in NE PA. My house in Putnam County NY is 1/2 million. Bi-levels that are 30 years old? Ok mine is only 13 years old. I will never be able to afford to move back to NY, unless I win lotto.
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