New home sales in July continued to reflect a return to pre-pandemic levels, the North State Building Industry Association reported.
During the month, BIA members reported selling 403 new homes, which was 13% higher than June but 16% lower than July 2025. The monthly total was just slightly below the average July in the region of 412 homes and one more sale than the 402 sold in July 2019 before the pandemic began.
BIA President and CEO Tim Murphy said affordability factors continue to put a damper on sales.
“Mortgage interest rates have edged upward to their highest level in about a year as uncertainty about the world’s oil supply continues due to the conflict between the U.S. and Iran,” Murphy said.
“In addition, local government red tape continues to keep production low and their high fees — averaging over $100,000 per home in the region — drive costs far higher than in many parts of the country.”
Murphy added, however, that prospective buyers should remember that builders are working harder than ever to make it possible to purchase a new home.
“Through mortgage rate buy-downs, downpayment assistance and other incentives, new homes today are often more affordable than you’d think. Families considering relocating should talk to builders about what options they have available,” he said.
In July, Roseville saw the most new homes sold with 72, followed closely by Sacramento with 69. Rancho Cordova was third with 49, followed by Elk Grove with 46. Natomas and Galt tied for fifth with 33 new home sales each.
Sales were reported for 204 communities across Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties.
The North State BIA is the leading advocate for the home building industry in the greater Sacramento region. Representing more than 500 members who provide 55,000 industry jobs, the North State BIA is committed to preserving and furthering the economic interests of its members while also working to enhance the industry’s standing as a significant contributor to the regional economy. For more information, visit www.northstatebia.org.
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