The North State Building Industry Association reported the highest number of new home sales in January 2007 since June 2005.  There were 702 sales in January in the 186 new home communities the BIA tracks, up from 379 in December 2006 and up from 486 in January 2006.  The increase in sales this January over last averaged 15 percent per new home community.

A gradual recovery in the housing market is anticipated for this year.  The unusually strong buyers market continues for the time being, but those special incentives homebuilders have been offering are expected to decline later in the year as the market recovery takes a more firm hold.  Now may be the best time for the best deal on a new home.

The Placer County ( Roseville , Rocklin, Lincoln , Granite Bay ) area had 37% of the new home sales in the region in January.  The Antelope, North Highlands, Natomas, North Sacramento area had 12% of the sales, while the Folsom, El Dorado Hills, Rancho Murieta area posted 11.5% of the total sales. 

32.5% of new home sales in January were priced at or below $400,000.  60.5% were priced between $400,000 and $600,000.  The remaining 7% were priced from $600,000.

The 30-year fixed-rate mortgage (FRM) averaged 6.28 percent with an average 0.3 point for the week ending February 8, 2007, down from last week when it averaged 6.34 percent. Last year at this time, the 30-year FRM averaged 6.24 percent.

"News of moderate employment gains in January led to a halt in the recent upward trend of interest rate movements,” said Frank Nothaft, Freddie Mac vice president and chief economist.  “The 111,000 jobs added last month were fewer than had been anticipated, while the unemployment rate edged up unexpectedly.

“Throughout the year we expect rates on 30-year mortgages to average between 6.3 and 6.5 percent.  The flat or increasing rate environment will likely cause the refinance share to contract gradually.  In addition, the dollar volume of home equity cashed-out will also retreat from the record level of $314 billion set in 2006 to around $230 billion this year.”

The unemployment rate in the Sacramento-Arden-Arcade-Roseville MSA remained stable at 4.3 percent in November and December 2006, but above the year-ago estimate of 4.1 percent.  This compares with an unadjusted unemployment rate of 4.6 percent for California and 4.3 percent for the nation during the same period.  The unemployment rate was 4.3 percent in El Dorado County , 3.6 percent in Placer County , 4.4 percent in Sacramento County , and 5.5 percent in Yolo County .
Between November 2006 and December 2006, the total number of wage and salary jobs increased from 915,800 to 918,200, a gain of 2,400 jobs, with mostly seasonal gains in retail and hospitality.

bulletGearing up, Sierra ski resorts, restaurants and lodges accounted for most of a 1,500 gain in leisure and hospitality jobs.  That eclipsed a gain of 1,400 in retail trade, adding jobs for a third consecutive month to what is typically the peak of the year.  During the critical 4th quarter retail employment climbed by slightly more than 5,000 jobs between September and December in what appears to be a reasonably good holiday season for retailers.
bulletSmaller monthly gains were observed across other service industries, most notably in the tax preparation, health care, education, financial and information sectors.
bulletSome of the monthly gains were tempered by a mostly seasonal decline of 1,900 jobs in construction, while small cuts were observed in electronics and miscellaneous manufacturing.


Between December 2005 and December 2006, total jobs increased by 14,200 – an annual gain of 1.6 percent, and a slight slowdown from the beginning of the year where the gain was above 2 percent.

bulletFour major industries accounted for most of the annual increase, with government up by 5,700 jobs.  State employment accounted for 70 percent of the gain, rebounding after a long period of workforce reductions that began in 2001.
bulletStrong gains were also observed in leisure and hospitality as restaurants and lodging contributed the most jobs for a 4,200 gain.  Professional and business services gained 3,400 jobs while health services added 2,300 jobs to serve the growing population.
bulletThe housing market slowdown offset some of the gain.  The December data show a decline of 1,500 jobs in construction over the year, the first such downturn after 13 consecutive years of growth.  Smaller related losses are showing up in real estate and financial activities, while the information and manufacturing segments are off slightly due to the competitive climate in the technology sector.

The number of new home sales in each price range is listed below:

Price Ranges :            Jan. 2007        Year-to-Date          
                                        Att. / Det.          Att. / Det.

Under $250,000            2  /  0                2   /    0       
$250-300,000                -2  /  22            -2  /    22   
$300-350,000                30  /  78           30  /   78   
$350-400,000                9  /  89              9  /   89   
$400-450,000                30  /  125         30  /  125       
$450-500,000                5  /  83              5   /  83   
$500-550,000                5  /  125            5  /  125   
$550-600,000                10  /  44            10  /  44   
$600-750,000                0  /  17               0  /  17
$750-1,000,000             1  /  26              1  /  26
$1,000,000 and over     0  /  3                0  /  3

TOTAL                             90  /  612         90  /   612

Note: The above figures and percentages 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 970 member companies in a 20 county area of northern California . This news release can also be found on the Internet at www.northstatebia.org, and also your Member Profile.


North State Building Industry Association
1536 Eureka Road
Roseville , CA   95661
(916) 677-5717
www.northstatebia.org
"Planning Communities.  Building Dreams."