New Homes-Sweet-Homes

According to the Los Angeles Times, sales of new homes within California actually rose during the month of December- by a nice healthy margin of 17.5%.  Not bad, particularly considering that the end of the year is often a slow time for real estate sales.

What does this mean?  Well, it’s great news for builders and the construction industry, for sure.  For quite a while now new homes have had a tough time competing with the low prices on existing homes.  Foreclosures and short sales, despite their risks and red tape, have proved more attractive to buyers than shelling out for a brand-new place.

The trend may be related to the fact that foreclosures appear to be slowing down in the Golden State – although whether that’s a substantial fact or a result of shadow inventory remains to be seen.

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