August 6, 2009
Contact: John Orr, President/CEO
johno@northstatebia.org
916-751-2772
The North State Building Industry Association (BIA) reported that there were
161 new home sales in July in the 112 communities it tracks (representing
about two-thirds of the total number of active communities in the region).
The number of sales per week in each community declined slightly in July
over June, but showed improvement over July 2008.
The percentage of sales in each region for the month of July is as follows:
• Placer County (Roseville, Rocklin, Lincoln, Granite Bay): 48%
• Vineyard/South Sacramento (Elk Grove) area: 11%
• City of Sacramento: 9.5%
• Northeast Suburban (Rancho Cordova, Gold River): 9.5%
• Folsom, El Dorado Hills, Rancho Murieta: 6%
• Yuba City/Marysville area: 5%
• Antelope, North Highlands, Natomas, North Sacramento area: 5%
• Yolo County: 3%
• Laguna/Franklin: 3%.
• Galt: 0%.
During the month of July, 47.5% of homes sold for $300,000 or less; 35.5%
sold for $300,000-400,000; 12% sold for $400,000-500,000; 2.5% sold for
$500,000-600,000; and 2.5% sold for $600,000 and above. 83% of the total
sales were priced at or below $400,000.
The 30-year fixed-rate mortgage (FRM) averaged 5.22 percent with an average
0.6 point for the week ending August 6, 2009, down from last week when it
averaged 5.25 percent. Last year at this time, the 30-year FRM averaged 6.52
percent.
"Better than expected economic reports helped to keep mortgage rates low
this week,” said Frank Nothaft, Freddie Mac vice president and chief
economist. “The economy slowed by an annual rate of 1 percent in the second
quarter, which was more positive than market forecasts.”
“Homebuyer demand improved as well, aided by high levels of housing
affordability. The first half of this year contained the top six months
with the most affordable housing conditions since the National Association
of Realtors (NAR) began calculating its Housing Affordability Index in
January 1971. As a result, pending existing home sales rose for five
consecutive months ending in June, a trend not seen since July 2003. In
June, a typical family would have devoted 15.7 percent of their gross income
to mortgage principal and interest payments, the NAR explained.”
The unemployment rate in the Sacramento-Arden-Arcade-Roseville MSA was 11.6
percent in June 2009, up from a revised 11.1 percent in May 2009, and above
the year-ago estimate of 6.8 percent. This compares with an unadjusted
unemployment rate of 11.6 percent for California and 9.7 percent for the
nation during the same period. The unemployment rate was 11.5 percent in El
Dorado County, 11.4 percent in Placer County, 11.8 percent in Sacramento
County, and 11.1 percent in Yolo County.
Between May 2009 and June 2009, total wage and salary employment declined by 600, falling to 854,700 jobs.
- Educational and health services and government led the region in month-over job losses, each down 500 jobs. Educational and health services recorded higher than average cutbacks, primarily in private educational services (down 400 jobs) due to seasonality. In government, both state and local government payrolls decline by 200 jobs, and federal government was down 100 jobs.
- Professional and business services reported a loss of 400 jobs, in contrast to its average 1,000-job gain typical of June. Losses were concentrated in professional, scientific and technical services (down 300 jobs), while management of companies cut back 100 jobs. Administrative and support services remained unchanged over the month.
- Construction (up 500 jobs) accounted for the largest month-over gain, with construction of buildings and heavy and civil engineering each picking up 200 jobs and specialty trade contractors adding 100 jobs.
Between June 2008 and June 2009,
total industry employment declined 45,200 jobs, or 5.0 percent.
- Construction and trade, transportation, and utilities (down 13,500 and 10,800 jobs respectively) sustained the highest employment losses and, combined, accounted for nearly 53 percent of the total job reduction in the region over the year.
- Professional and business services fell by 9,400 jobs. Cuts in administrative and support services (down 5,300 jobs) accounted for the majority of the decline.
- Leisure and hospitality reduced payrolls by 6,700 jobs, with losses concentrated in accommodation and food services (down 4,100 jobs). Arts, entertainment, and recreation contracted by 2,600 jobs.
- Educational and health services (up 4,100 jobs) continued to lead year-over job advancement, adding 1,900 private educational services jobs and 2,200 health care and social assistance jobs.
The number of new home sales in each price range is listed below:
Price Ranges:
July 2009 Year-to-Date
Att. Det. Att. Det.
Under $250,000 14
9 68 97
$250-300,000 7
47 39 225
$300-350,000 0
17 9 295
$350-400,000 1
39 12 293
$400-450,000 0
15 0 180
$450-500,000 0
4 0 101
$500-550,000 0
0 0 102
$550-600,000 0
4 0 19
$600-750,000 0
3 0 51
$750-1,000,000 0
1 0 2
$1,000,000 and over 0 0
0 4
Total
22 139 128 1369
Grand total, combined 161
1497
Note: The above figures are calculated
on the average price for all new homes sold in each community.
The North State Building Industry Association is a trade association
representing 550 member companies in a 20 county area of northern
California. This news release can also be found on the Internet at
www.northstatebia.org.
North
State Building Industry Association
1536 Eureka Road
Roseville, CA 95661
(916) 677-5717
www.northstatebia.org
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