Mixed Results for New Home Sales in January

Statewide new home sales were up 9.4% in January as compared to December 2006, but down by 18.6% as compared with January of last year according to the California Building Industry Association. Median prices, however, were essentially the same as December, but up 2.2% from January of last year.

Builders, who began controlling releases and offering incentives in the last half of 2005, seem to be more optomistic about the market, especially in the Pleasanton/Dublin/Livermore/San Ramon area. And the local statistics seem to indicate that there is reason for optimism.

In the Oakland-Fremont-Hayward metropolitan statistical area, 484 new homes were sold in January, up 7.8 percent from 449 in January 2006, and 28.4 percent from 377 sold in December. The area’s median asking price rose 6.7 percent from $579,990 in December to $618,990 in January, but last month’s figure was still down from the $676,000 median price in January 2006. The area covers Alameda and Contra Costa counties.

Certainly with the early spring strength in the Pleasanton and Tri-Valley resale real estate market there is cause for optimism in the new home market. Don’t be surprised if the February and March builder statistics show dramatic improvement.

Courtesy of the East Bay Business Times.