DQNews Archived Article

California New Home Sales Up

by Real Estate Analyst John Karevoll
October, 1997

La Jolla, CA.— Sales of newly-built homes in California reached a six-year high during the last quarter, the result of rising resale prices and tight inventory, a real estate information service reported.

A total of 16,084 newly built houses and condos were sold statewide during the July-to-September period. That was up 6.3 percent from the previous three-month period and up 17.8 percent from 13,654 for the same period last year, according to DataQuick Information Systems.

Last quarter's sales count was the highest since 16,722 newly-built residences were sold during second-quarter 1991. The low of the 1990s was reached in first-quarter 1993 when 5,957 newly-built residences were sold.

"New home construction and sales are important parts of the economy, and industry analysts have been surprised that it didn't take off sooner. Now, with prices going up in the resale market, all indications are that new home sales will continue to grow," said Mike Ela, DataQuick president.

The sales increase was strongest in the Bay Area where 3,659 newly-built homes were sold last quarter, up 23.1 percent from 2,972 for the same period a year ago. Sales were up 18.0 percent from 2,632 to 3,107 in the Central Valley and were up 12.3 percent from 6,958 to 7,815 in Southern California.

DataQuick monitors real estate purchasing and financing nationwide, and provides information to consumers, lending institutions, title companies and industry analysts.

The median price paid for a new home was $203,000 last quarter, unchanged from the previous quarter and up 5.2 percent from $193,000 for third-quarter 1996, DataQuick reported.

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1997 DataQuick Information Systems.
All rights reserved.

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