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Local Market Update - Denver Leads, San Fran Surprises |
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Written by Jonathan Dienhart
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02.10.2010 |
In the latest release of our 4th Quarter 2009 New Home Executive Summary reports, builders saw improved conditions in several markets nationwide in terms of increases in year-over-year net sales volumes and prices, as well as continued decreases in inventory levels. The Denver new home market has been a top performer, with total net sales increasing 40% in the fourth quarter of 2009 when compared to the volume observed in fourth quarter 2008. Sales prices of new homes have remained steady in Denver, with the median new home price increasing 8% year-over-year. The San Francisco Bay Area, where indicators were on a steady downward path over the last three years, saw a welcomed boost during 4th quarter 2009, with net sales posting a 37% increase from one year earlier.
Just as conditions improved in a handful of markets, there were several other markets that continued to struggle through 4th quarter 2009. Sales of new homes in Sacramento remained bleak, with 4th quarter’s net volume down 22% from a year earlier. Builders in Chicago continued to face challenging conditions as well, with 4th quarter 2009’s net sales down 29% from the volume seen in 4th quarter 2008. Despite this decrease, the effects of seasonality should be noted in terms of slower buyer activity that accompanies the harsher winters in the eastern and mid-west markets.
Improved statistics at the end of 2009 are a promising sign for the recovery of the nation’s housing market and economy. New home builders continue to make strides toward increasing absorption rates and moving inventory homes. For more information on New Home Executive Summary reports, or to purchase, please visit the information store by clicking here. |
