Saturday, April 08, 2006

New Home Appreciation at 0.3%

After years of rapid appreciation, the year-over-year median net price for a new home rose a paltry 0.3%, according to the Sacramento Bee. Soft landing or hard?

Regionwide, a new home's median net price, which takes into account discounts and incentives offered by developers, rose to $484,147 for the quarter, $1,483 - or 0.3 percent - higher than a year earlier.

In some communities, median prices - the point at which half of the homes sold for more and half for less - actually dropped substantially. In Folsom and Lincoln, for instance, median prices of new homes during the first three months of 2006 were down 9.4 percent and 4.1 percent, respectively, over the first quarter of 2005...

A new home is now on the market for an average of 12 weeks, according to the Gregory figures...[U]nsold home inventory grew for the fourth straight quarter.

Catherine Munsee, manager of information services for the Gregory Group, said that developers may not be getting premium prices for new properties because, after the region's long building boom, there are now plenty of attractive almost-new homes on the market. "We're talking 1-to 3-year-old homes that are competing with new home products," she said.

6 comments:

Cole Kenny said...

You should run Sacramento through the Google Real Estate Search. I found more than 30 listings that say they're "reduced."

David said...

"the year-over-year median net price for a new home rose a paltry 0.3%"

That is really a DECREASE. Inflation.

David
Bubble Meter Blog

Anonymous said...

"That is really a DECREASE. Inflation."

Ding ding ding, we have a winner!

Lander said...

Shhh! Real estate never goes down.

peterbob said...

This type of thing really irks me. The article title is "New home sales inch up." WTF? Who is writing this? The BIG news is that that prices are essentially flat after a few years of very large appreciation.

The journalist needs to take a statistics course in order to understand the 'big picture.'

Lander said...

Same data source, two headlines:

-Sharp 1-Q drop in region's new-home sales
v.
-New home sales inch up