July new home sales in the greater Sacramento region rebounded from June’s low point, with 480 sales reported by North State Building Industry Association members, the BIA reported today.
Sales in the seven-county area rose 53% from June and were 11% above July 2024’s totals. BIA President and CEO Tim Murphy attributed the increase to substantial builder incentives, a gradual decrease in mortgage interest rates and buyers’ continued interest in moving to a new home.
“Rates have trickled down to their lowest point this year, a current average of just over 6.5%,” Murphy said. “And more buyers are discovering that homebuilders can offer rate reductions and incentives that existing homeowners can’t offer.”
He said a recent survey by Lending Tree found that California is one of just three states where it’s currently significantly less expensive to buy a new home than an existing home. The study found that statewide, existing homes are 24.7% more expensive than new homes.
“That’s just another reminder that prospective buyers should consider the options available because a new home may be more affordable than they think,” Murphy added.
He also noted that recent studies have indicated that many people will likely jump off the fence if interest rates fall to 6%, and that if local governments around the region would streamline the development process and lower the fees that on average add over $100,000 to the price of a home, more homes could be built at lower price points.
“The BIA will continue to pursue pragmatic reforms that keep the dream of homeownership alive in our region,” he said.
Roseville (90) and Rancho Cordova (84) again recorded the most sales, followed by Elk Grove (64), Sacramento (50) and Natomas (34). Lincoln sales were the sixth-highest (29), followed by Plumas Lake (25), Rocklin (22) and Folsom (18). Galt re-entered the top 10 with 14 sales reported.
BIA statistics covered 193 new home communities reported by members in Amador, El Dorado, Placer, Sacramento, Sutter, Yolo and Yuba counties.
