Business & Real Estate

Home sales spiked across the Sacramento region this summer

Lack of workers stymies new home construction

The number of new homes being built in the Sacramento region has increased significantly since last decade's market collapse. But for the first time in 40 years, there doesn't appear to be a construction boom on the horizon. A lack of skilled work
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The number of new homes being built in the Sacramento region has increased significantly since last decade's market collapse. But for the first time in 40 years, there doesn't appear to be a construction boom on the horizon. A lack of skilled work

More homes were sold across the four-county Sacramento region this summer than in any similar period since the peak of the housing bubble in 2005, CoreLogic reported Wednesday.

A total of more than 12,000 new and existing homes changed hands during June, July and August, the Irvine-based real estate tracking firm said. The last summer with a higher sales volume was in 2005, when more than 17,500 homes were sold, but that was during a time of lax lending standards and rampant speculation.

A significant increase in new home sales was a big part of the mix this summer. Sacramento County had 270 new homes sales recorded in August, a 37 percent increase from August 2016 and the highest for the month since 2007, according to CoreLogic.

Sacramento County’s median price of $332,250 for single-family resale homes was up nearly 7 percent over August 2016, the data firm said. Placer, Yolo and El Dorado counties also saw strong year-over-year gains.

Low inventory, strong buyer demand and 30-year mortgage rates of about 4 percent have fueled steady price appreciation for homeowners in recent years. Interest rates of around 4 percent or less have been commonplace since mid-2011 but are extraordinarily low by historical standards.

In the Sacramento suburbs, El Dorado County’s median sale price for new and existing homes in August was $483,000, up 16 percent from the same time last year and the highest it’s been in a decade, CoreLogic said. The high median price for new homes there, more than $600,000, helped boost that figure.

El Dorado County had by far the highest price for new homes in the four-county region this summer.

Hudson Sangree: 916-321-1191, @hudson_sangree

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