For the first time since December 2006, there was a year-over-year rise in the monthly count of new-home sales in California, according to the California Building Industry Association.

The association’s monthly CBIA/Hanley Wood Market Intelligence (HWMI) New-Home Sales and Pricing Report showed sales in new-home communities of 10 units or more were 25 percent above October 2008. New-home and condominium sales rose to 2,294 this year from 1,838 last year.

Condominium sales were up a whopping 94 percent, townhomes and "-plexes" — duplexes, triplexes, etc. — were up 36 percent, and sales of single-family homes were up 4 percent. The San Francisco Bay Area led the change with a more than 100 percent increase in new-homes sales in the San Francisco, Peninsula and Silicon Valley areas.

The rise represents the first notable increase since the start of the housing downturn. HWMI’s director of published research, Jonathan Dienhart, said in a statement that the numbers must be viewed in the proper context.

"While this month’s figures are encouraging, we must keep in mind that we’re comparing the figures to October of 2008, which was the second-lowest month of nominal sales we’ve seen during the downturn," Dienhart said in a statement.

Deinhart also said the first-time homebuyer tax credit, orginially set to expire in November, could be distorting the market due to buyers rushing to meet the deadline.

The median base price of homes sold was down 4 percent year-over-year, according to the report.

Non-seasonally adjusted total new-home sales were 1 percent below levels seen in September, but were an improvement from the 29 percent decrease seen last year for the same month-to-month period.


What’s your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Thank you for subscribing to Morning Headlines.
Back to top
Inman Connect Las Vegas is back and there are only a few presale tickets left! Register today before they're gone.REGISTER×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription