Industry News

SoCal new-home price gains expected to cool

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Demand for new homes in Southern California remains stable and average prices have been flat for the past year, according to a market report by Real Estate Economics, a real estate information company. The fourth-quarter 2005 market report, which includes data from Ventura, Los Angeles, Orange, San Diego, Riverside and San Bernardino counties, shows that total inventory of new homes for sale is up about 15.9 percent, while monthly sales are up about 29.4 percent since fourth-quarter 2004. The pace of new-home sales throughout Southern California was 9,226 sales per month in fourth-quarter 2005, with an average sales rate per new-home development of 7.3 sales per month. While inventory has risen, the months' supply of inventory has dropped 10.4 percent from fourth-quarter 2004 to fourth-quarter 2005 based on the pace of sales and the construction of more new-home communities, Real Estate Economics reported. The average of minimum lot sizes in new-home developments dropped 9.2 percent...