Analysts say California home builders can expect to struggle through the rest of 2008 as buyers increasingly turn to discounted homes owned by banks instead of new homes.
Hanley Wood Intelligence of Costa Mesa reported sales of new homes across California fell sharply again in June from the same time last year. June sales of 2,712 new homes fell 58 percent from June 2007.
The Sacramento region – El Dorado, Placer, Sacramento and Yolo counties – performed only slightly better. It saw a 34.8 percent sales decline from June 2007. Builders reported 391 sales in June, down from 600 the same time last year. June sales were also 16.6 percent below May's.
The California Building Industry Association, a trade group for builders, said the pace of year-over-year declines is worsening statewide. May sales were 51 percent lower than May 2007, while April sales were 44 percent below the same time a year earlier. Builders believe they are on track for the fewest new-home starts since the state began keeping records in 1954.
– Jim Wasserman
