The bar graph shows new home sales in July between 2016 and 2025. Image courtesy of the North State Building Industry Association

SACRAMENTO REGION, CA (MPG) - July new home sales in the greater Sacramento region rebounded from June's low point, with 480 sales reported by North State Building Industry Association members, the association reported Aug. 12.

Sales in the seven-county area rose 53% from June and were 11% above July 2024's totals. Building Industry Association President and CEO Tim Murphy attributed the increase to substantial builder incentives, a gradual decrease in mortgage interest rates and buyers' continued interest in moving to a new home.

"Rates have trickled down to their lowest point this year, a current average of just over 6.5%," Murphy said. "And more buyers are discovering that homebuilders can offer rate reductions and incentives that existing homeowners can’t offer."

A recent survey by Lending Tree found that California is one of just three states where it's currently significantly less expensive to buy a new home than an existing home, according to Murphy. The study found that statewide, existing homes are 24.7% more expensive than new homes.

"That's just another reminder that prospective buyers should consider the options available because a new home may be more affordable than they think,” Murphy added.

Murphy also noted that recent studies “have indicated that many people will likely jump off the fence” if interest rates fall to 6%. And if local governments throughout the region streamlined the development process and lowered the fees that on average add more than $100,000 to a home’s price, according to Murphy, more homes could be built at lower price points.

"The BIA will continue to pursue pragmatic reforms that keep the dream of homeownership alive in our region," Murphy said.

Roseville at 90 and Rancho Cordova at 84 again recorded the most sales, followed by Elk Grove at 64, Sacramento at 50 and Natomas at 34. Lincoln sales were the sixth highest at 29, followed by Plumas Lake at 25, Rocklin at 22 and Folsom at 18. Galt re-entered the Top 10 with 14 sales reported.

Building Industry Association statistics covered 193 new home communities reported by members in Amador, El Dorado, Placer, Sacramento, Sutter, Yolo and Yuba counties.

The North State Building Industry Association is the leading advocate for the home-building industry in the greater Sacramento region. Representing more than 500 members who provide 55,000 industry jobs, the North State Building Industry Association 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. For more information, visit www.northstatebia.org.