Last year was good, as reported by the Sacramento Bee, and this year will probably be better as local governments in the capitol region appear to be ready to approve more suburban housing for the multitudes wanting to live in it.
An excerpt from the Bee.
“It was the year the housing market turned around.
“Figures released this week show that in 2012, new home sales jumped and resale home prices surged across the Sacramento region after reaching low points the year before.
“New home sales increased by 67 percent in the greater Sacramento region last year compared with 2011, according to a report issued today by the Gregory Group, a Folsom-based firm that advises the new home industry. Sales increased from 1,668 in 2011 to 2,782 in 2012, it said.
“The dramatic turnaround reflects just how far Sacramento slid. At the low point of the housing collapse, new home construction in Sacramento fell to a 50-year low, and prices were cut in half in many neighborhoods. Now that momentum has shifted, experts say, it shows no sign of slowing.
“That’s not to say the market has returned to boom status, or even normal. The number of new homes sold last year remains a fraction of the 17,000 houses bought in 2004, near the height of the housing boom. It’s also small compared with the 8,765 in average annual new home sales in the past 15 years in the greater Sacramento region.
“But the percentage increase is unprecedented, said Greg Paquin, who heads the Gregory Group. “I don’t recall such a large increase year over year,” Paquin said.
“The demand was fueled by historically low interest rates, low prices and a shortage of resale homes on the market.
“Kevin Carson, president of the New Home Company, said the firm sold 20 houses at its Lincoln Crossing project in 2012 after selling only two homes there in 2011.
“Its projects in Lincoln and Granite Bay will soon sell out, he said, and the company plans to open three new communities in Folsom and Granite Bay later this year. The New Home Company has 26 homes under construction at its Trails development in Folsom. All are sold.”