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.