New Home Sales Continued to Surge in August

Construction on these new homes in north Natomas was completed during the pandemic. The top photo was taken on Feb. 8 and the bottom on August 15. / Photo NatomasBuzz.com

BY BRANDY TUZON BOYD
THE NATOMAS BUZZ | @natomasbuzz

Sacramento-area new home sales continued to surge last month.

“A buyer of mine reached out recently regarding a new home development in Natomas, and when I called to schedule an appointment, the builder advised that they had just sold their last one,” said Alyssa Lopez-Lozano, a Natomas-based real estate agent.

“This has definitely been the trend over the past few months and I would advise any buyers who are looking to buy a new home in 95834 or 95835, not to wait for the new releases,” added Lopez-Lozano. “Due to COVID some of the builders are by appointment only and at least strongly advise an appointment.”

Area builders sold 633 new homes in the last month, recording the highest number of new home sales during the month of August since 2004, according to the North State Building Industry Association.

August marked the third straight month during which new home sales were higher than in 2019, putting year-to-date sales at 4,538 — 19.9% higher than last year, said Michael Strech, the BIA’s president and CEO, in a press release.

The North State BIA advocates for the home building industry in the greater Sacramento region. It represents more than 530 members which accounts for about 55,000 industry jobs.

“In the wake of the drop-off when the COVID-19 pandemic hit, that is truly a remarkable figure,” Strech added.

Fewer new homes were sold in August than the record-breaking 888 reported in July, but Strech said the continued demand for new homes in the region remains strong.

“…we are optimistic that 2020 could be the best year for sales in our region since the Great Recession,” added Strech.

The BIA report covers sales between August 3 and August 30 at 164 new-home communities. During that time, a total of 345 new homes were sold in Sacramento County, including Natomas, while 180 were sold in Placer County. The remainder were sold in communities in Yolo, El Dorado, Yuba and Sutter counties.

Lopez-Lozano added that the resale market is also strong due to low inventory and Bay Area transplants moving to the area.

“I’ve had multiple buyers in situations where they’re competing against no less than 10 other buyers,” Lopez-Lozano said.

Natomas real estate agent Cynthia Hextell agreed that it is a sellers’ market, pointing to low interest rates and more qualified buyers looking to purchase a home.

“Most (resale) listings are going with multiple offers,” Hextell said. “We are seeing a lot of Bay Area people relocating to the Sacramento area during the COVID-19 pandemic because many businesses are allowing their employees to work from home giving them the flexibility to live anywhere and still make Bay Area money.”

A10-year look-back on Sacramento-area new home sales in the month of August. Source: North State BIA

A break down of new home sales in the region for August. Source: North State BIA

The August price points for new home sales in the Sacramento area. Source: North State BIA