Listen to the iHeartMedia interview: Michael Strech, the BIA's President and CEO.
New-home sales in the greater Sacramento areas rebounded in the second half of April as a growing number of buyers signed contracts while the number of cancelations of previous sales diminished, the North State Building Industry Association reported today.
During the month, there were 275 net sales in the region between Marysville and Galt (the difference between new sales contracts and cancelations of previous sales). That was 40.1% below the net sales reported in April 2019 and 27.1% fewer than the 377 net sales in March.
However, sales climbed in each of the last three weeks of the five-week reporting period
"After hitting a low point of just 29 net sales during the week ending April 12, net sales rose in each of the next three weeks and 83 net sales were reported during the week ending May 3," Strech said. "While these sales totals are well below the record-setting figures in January and February, they indicate that buyers are adjusting to the economic uncertainties caused by the coronavirus outbreak and that there is clearly a demand for new homes in the region."
Even more encouragingly, new sales during the week ending May 3 totaled 118, nearly twice the 63 reported during the week ending April 12, which was the bottom of the market so far. And during the week ending May 3, a total of 1,338 people visited the 166 subdivisions reporting, which was 140% more than during the low point in early April.
Builders have added virtual home tour options to their websites, allowing customers to safely explore new-home communities and models from their living rooms, Strech noted. And new homes have continued to be built since the shelter-in-place directives in mid-March because state and local officials recognize that homebuilding is an essential industry.
"There is a wide selection of new homes to meet the needs of a wide range of buyers in our region, while mortgage rates remain at historic lows," Strech said. "Clearly, serious buyers are still in the market and builder