Friday, October 13, 2006

New Home Prices Back to 2004 Levels*, Incentives Up 218%

From the Sacramento Business Journal:

The region's median-home price -- meaning half the homes sold for more, the other half for less -- dropped 3.9 percent to $440,240, the lowest price since the second quarter of 2004...

Housing inventory in the region, including lots ready for building, reached 4,598 in the third quarter -- more than five times the 875 homes and lots in second-quarter 2004, the lowest point since 2000. About 20 percent of the current housing inventory is completed homes waiting on buyers, [Greg] Paquin [owner of The Gregory Group] said...

*Not including incentives, the average new-home price dropped to the lowest level since third-quarter 2004 in Sacramento, Placer and Yolo counties. From the second to the third quarter, the average price dropped almost 5 percent in Sacramento and Yolo counties to $444,088 and $494,781, respectively. New-home prices fell 3.6 percent to average $538,094 in Placer County. El Dorado home prices continued to rise as new high-end homes opened in Serrano. But overall sales in the county still dropped 59 percent as the average price reached a record $769,293...

The average incentive of $14,916 in the third quarter was 218 percent higher than in the third quarter of last year. The perks reached up to $50,000 for new homes and $125,000 for existing homes, according to the Gregory Group.

1 comment:

Anonymous said...

I think Lander should add a live video shot of 301 Capitol Mall on the top of his web page. That place is going to become the poster child of the Sac housing bubble. "Soaring at 54 stories high" ??? Two thousand $1M condos in Sac ???

I'm afraid it's going to be a hole in the ground for the next 10 years, reminiscent of 9th & J St. . . . . or maybe it will only soar 2 or 3 stories high. Too bad it's right there on Capitol Mall, right next to the Tower Bridge, right next to Sac's front door, within spitting distance of the Capitol. I guess the developer's good friends in the legislature might bail him out and fill it with state government offices if all the wealthy retirees don't materialize.