Sales were down 13 percent from August and 19 percent below September 2024. Designed by Freepik, www.freepik.com

 

SACRAMENTO REGION, CA (MPG) - As many prospective homebuyers waited to see what happened with mortgage interest rates, new home sales in the Sacramento region dipped in September but remained above the average number of sales for the month, according to the North State Building Industry Association.

North State Building Industry Association-member homebuilders reported selling 430 homes, 5 percent above the average 409 sales during September dating back to 1997. Sales were down 13 percent from August and 19 percent below September 2024. Building Industry Association President and CEO Tim Murphy said that many buyers are hoping that interest rates drop further before pulling the trigger.

"While mortgage rates have dropped to below 6.5 percent, many potential buyers are betting that they will fall even further in the near future," Murphy said. "It is also possible that buyers are waiting to see how soon the government shutdown is resolved. Markets like certainty and homebuyers are no different."

Murphy said that many area builders continue to offer generous incentives to help make home buying more attainable and there is a wide selection of styles and locations in the 197 active new home communities from Yuba City to Galt. And Murphy again called on area governments to streamline the permitting process and reduce the fees that now average more than $100,000 per home.

"Too often, the permitting process takes years between when a new development is proposed and when construction actually begins, and along with high fees and other costs, builders can't meet the demand for housing. Until this gridlock is broken, demand will continue to outstrip supply and housing costs will remain challenging," Murphy said.

In September, Roseville recorded the most sales with 98, followed by 75 in Rancho Cordova, 51 in Sacramento, 50 in Plumas Lake and 36 in Elk Grove. Natomas was sixth with 29 sales, followed by Lincoln (25), Folsom (13), Rocklin (11) and El Dorado Hills (10).

North State Building Industry Association statistics covered 197 new home communities reported by members in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties.