Southern California builders selling new homes at fastest pace in 9 years
Southern California builders are putting a dent in the regional housing shortage, selling new homes at a pace not seen in nine years.
CoreLogic data shows 18,117 new residences sold in the 12 months ended in May across the four counties covered by the Southern California News Group. That’s the best performance since January 2009, and it’s up 7.7 percent in a year.
Still, the upswing looks sluggish compared with housing development before the Great Recession. For 2000 through 2006, Southern California builders were selling homes more than twice as fast as today at a 43,000-a-year pace. Don’t forget one reason for recently modest homebuilding — that last development frenzy ended badly when real estate’s bubble burst.
Still, new housing’s recent surge is a sharp contrast to resales of Southern California’s existing homes, a market that until recently has suffered from limited inventory: 224,296 homes sold in the 12 months, down 2.8 percent in a year and off 4.4 percent from the post-recession peak of September 2013.
As a result, new housing’s share of sales grows. Builders were responsible for 8.1 percent of all Southern California home purchases in the past year. That’s the highest share of sales since March 2009.
Here’s a look at how home sales — new and existing residences — fared in the four counties in the 12 months ended in May and how that compared with previous trends.
Orange County
New homes: 5,088 sales — above 5,000 for five months, best since January 2007.
Builder’s share: 13.4 percent — above 13 percent for seven months, best since June 2008.
Existing homes: 32,828 resales — down 1.8 percent in a year and off 1.9 percent from the recent peak of October 2017.
Riverside County
New homes: 4,977 sales — above 4,900 for 33 months, best since March 2010.
Builder’s share: 11.6 percent in past 12 months — eighth month below 12 percent after 31 months above it.
Existing homes: 37,978 resales — off 1.1 percent from recent peak January 2011.
Los Angeles County
New homes: 4,205 sales — above 4,200 for seven months, best since April 2011.
Builder’s share: 5.2 percent — at 5.2 percent or higher for seven months, best since April 2011.
Existing homes: 76,927 in past 12 months — — off 4.8 percent from the recent peak of July 2013.
San Bernardino County
New homes: 3,847 sales — above 3,000 for 10 months, best since February 2009.
Builder’s share: 11.9 percent — highest since January 2009.
Existing homes: 28,541 resales — off just 0.2 percent from the recent peak set in April.