Real Estate News

This old-school feature is in high demand again by Sacramento-area new home buyers

The pandemic has changed how we live and work in countless ways. It’s also turned back the clock on the sort of features we value when looking for a new home.

Home offices, outdoor living spaces — some call them “California rooms” — and home gyms grew even more popular when the pandemic hit in 2020. And now, add front porches to the growing list of things buyers are looking for, not just in a Craftsman or bungalow, but in newly-built homes as well.

That’s one of the takeaways from a busy 2021 in the region’s new home market, said Michael Strech, president and CEO of the North State Building Industry Association.

“People want a front porch. They would like to be able to talk with their neighbors at a safe distance,” Strech said. “We’re social animals; we know our family spaces are important.”

Those in the market for new homes might see more options with front porches or expanded seating areas.

“Home builders are an innovative bunch,” Strech said. “We don’t build things that people don’t buy.”

Here are some other takeaways from the Sacramento new home market in 2021.

Demand for new homes in Sacramento, Placer

More than 7,200 new homes were sold in the Sacramento region last year — the highest number since 2005, the BIA said. December was very busy, with 615 new homes being sold. That’s more than twice the typical December total.

Was it enough to satisfy one of the nation’s hottest real estate markets?

“It’s better but not even close,” Strech said. “We’re falling behind. We were about 70% of where we need to be to keep up with the demand.”

Sacramento County was the most productive county in the region, with 3,540 new home sales. But Placer County — with less than one-third the population — had 2,696 new home sales. Yolo County saw just more than 340 sales and El Dorado had 245, according to the BIA.

Strech expects the geographic trends to continue, with lots of demand and growth in Elk Grove and along the Highway 65 corridor of Placer County. And he predicts 2022 will be even busier than last year, as long as supply chain issues and labor shortages are addressed.

Prices for new homes in the Sacramento region

With the Sacramento region seeing historic home price increases, an influx of new homes would be vital for buyers. Last year, roughly half the new homes in the region – about 3,600 – sold between $401,000 and $550,000, according to BIA data.

Nearly 600 new homes sold for less than $400,000.

There were also plenty of high-end homes sold in the market.

Nearly 1,900 new homes sold between $601,000 and $1 million last year, according to BIA data. New developments such as the Foslom Ranch area south of Highway 50 saw many new homes sell for more than $1 million.

This story was originally published February 4, 2022 at 5:00 AM.

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