August’s sales totals were well above the historical monthly average of 409 sales during the month and up 3% from July. MPG file photo

 

SACRAMENTO REGION, CA (MPG) - New home sales in the Sacramento region continued moving upwards in August, with 496 sales reported by members of the North State Building Industry Association – the highest total since February.

Tim Murphy, the BIA’s President and CEO, attributed the strong showing to a combination of slightly lower interest rates and the valuable incentives being offered by many builders.

“Mortgage interest rates continue to slowly move downward and are now at their lowest point since last October,” Murphy said. “As Robert Dietz, the chief economist of the National Association of Home Builders, told our members last week, as prospective buyers see rates get close to 6%, we’re likely to see a significant increase in sales. As rates have inched below 6.5%, we may be seeing that trend already getting underway.”

“In addition, many builders are continuing to offer a range of incentives designed to make buying a home more affordable, and those deals are clearly making a difference as well,” Murphy said.

August’s sales totals were well above the historical monthly average of 409 sales during the month and up 3% from July. However, due to July being a five-week month, basic sales were up nearly 30% from the prior month on a weekly basis. Sales were down 18% from August 2024, but because that also was a five-week month, weekly sales year-over-year were almost even. 

Rancho Cordova led all area submarkets with 91 sales, followed by Roseville with 87, Elk Grove with 74, Sacramento with 64, and Natomas with 40. Rounding out the top 10 were Plumas Lake (31), Lincoln (30), El Dorado Hills (29), Granite Bay (9) and Galt (8). For more statistical information, see charts below.

BIA statistics covered 198 new home communities reported by members in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties.

The North State BIA 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 BIA 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.