New home sales remain steady in Yuba County, according to report

In Sutter County, two new homes were reported to be sold, according to the association. Unlike Yuba County, Sutter County has struggled to build more housing due to flood plain restrictions and other issues.

In total, members reported selling 604 new homes in the counties served by the North State Building Industry Association. Those counties include Sacramento, Placer, Yuba, Yolo, El Dorado, Amador and Sutter.

According to data, sales in March were “virtually identical to February” and were an increase of 8% compared to March 2023.

Association President and CEO Tim Murphy said the strong new home sales demonstrate the advantage those choices have over existing homes and the continued reduction in the supply of existing homes that are on the market.

“New homes are built for today’s lifestyles and are far more energy-efficient than most existing homes, which can mean a big savings on energy costs,” Murphy said in a statement. “And while the number of existing homes for sale remains much lower than normal, there are 193 new-home communities currently active, giving buyers a wide choice of styles and locations.”

Despite the strong sales, Murphy continued to stress that state and local officials should be more proactive in reducing fees and “red tape” to increase production and lower costs.

“It still takes far longer than it should to get all the approvals builders need to actually begin construction, and government fees averaging around $100,000 per home in our region drive up the cost of a new home significantly,” Murphy said. “The only way to solve the state and local housing crisis is to consistently build enough homes so that supply and demand will be in balance for the first time in decades.”

Among the communities in the North State Building Industry Association’s coverage area, Roseville saw the most new homes sold in March with 144. Builders in Elk Grove reported 112 new homes sold and Folsom was third with 58. According to the association, the “vast majority” of the new homes sold were between $500,000 and $750,000.