New Home Sales Were Strong in 2019, Is It Enough?
An increase of more than 20 communities around the region, what does that mean in terms of variety?
Roseville, January 22, 2020  - The North State BIA President and CEO, Michael Strech, reports that builder members saw the most homes sold per year since 2007 last year, but that doesn't mean we are meeting demand in the region. "The Sacramento area had an impressive year in 2019. We are working hard to meet the need for new homes around the region, but it still falls short of where we need to be to help California reach a goal of 500,000 homes per year." Strech continued, " Governor Newsom set the goal of 3.5 million new homes added to California by 2025 and unless we see immediate and meaningful action from policy makers. work with the building industry, we will fall short of this goal."
Strech continued, "The BIA's members are very proud of the work that has been done to get us back to pre-recession sales numbers. There is a lot more work to do, but we are excited for a great 2020!"
A total of 5,337 new homes were sold during 2019. The sales were reported in an average of 167 subdivisions in the six-county Greater Sacramento region from Marysville and Yuba City in the north to Galt in the south. In addition, 127,249 people visited active new-home communities last year.

The North State BIA members added more than 20 communities to the region this year. "A growing community count is great for homebuyers as it often means variety in the homes available on the market, as well as the location in which you can purchase a home," Said Aren Bazzocco (Taylor Morrison), Chair of the Board for the North State BIA.

More than half of the new homes sold in 2019 were sold in Sacramento County. "Sacramento County's growth is not surprising. With the Folsom Ranch project picking up speed, heavy building in Elk Grove and Natomas, and the infill projects throughout Sacramento, this trend is likely to continue in the years ahead," Chair Bazzocco said.
Decade Sales Review
The chart below offers a 10 year look-back on sales per year. With 5,337 sales, 2019 was the best year for North State BIA members in more than a decade. 
Variety of Options for Homebuyers
Quality Traffic
Michael Strech reflected on the conversion of traffic to sales, "It's always beneficial to see the traffic to new home communities convert to sales. Throughout the past year we have heard our members excited about the quality of traffic coming to their communities and with record-breaking sales, it's clear their inclination about quality was spot on."
Sacramento County - Heavy Growth in 2019
New Home Prices
New home sales prices around the Sacramento Area offer the option to buy for almost anyone. The $350,000 to $500,000 range is the most frequently purchased price point, and there are many communities that offer a product in this band.
Regional Permitting Data
Last year permits grew by more than 2,000 around the Sacramento MSA. Sacramento County had the most permits pulled for new residential, but notably, Yolo county grew by more than 400 permits in 2019. The growth of permits in the Sacramento area is a positive foreshadow for the growth in the area. The LA Times have reported that California saw a possible 6% decrease in permitting in 2019, but in Sacramento we are seeing increased growth and a positive outlook for 2020.

The California Homebuilding Foundation's (CHF)  Construction Industry Research Board (CIRB)  regional permit data for 2019.
Permit totals are subject to change due to post-reported County/City activity and/or post-adjusted data submitted to CIRB by the reporting municipality. CIRB statistics are formally published at the end of the month in the California Construction Review (CCR) report. Please contact (916) 340-3346 or  [email protected]  for additional information.
About North State Building Industry Association
The North State BIA is the leading advocate for the home building industry in the greater Sacramento region. Representing more than 530 members, including 55,000 industry jobs, the North State BIA is committed to preserving and furthering the economic interests of its members, while also working to enhance the industry's standing as a significant contributor to the regional economy.

Media Contact:

Morgan Davis
Communications and Engagement Manager
Phone: 530.613.2076
Email address: [email protected]