California New Home Sales Drop

"Lackluster" is the word used by California's homebuilders to describe new home sales in their state. The latest monthly CBIA/Hanley Wood Market Intelligence New Home Sales and Pricing Report shows sales in August were 39% below August 2007. The decline was smaller than the 57% year-over-year dive recorded in July. But August 2007 was a particularly bad month last year, which makes the comparison look less dire, the report noted. A total of just 2,518 new homes were sold during the month, compared to 4,102 in August 2007. Jonathan Dienhart, director of published research for HWMI, Contra Costa, laid the blame for much of the downturn on credit, or the lack thereof. "Until credit markets begin to get back to a more normal level of activity, it will be difficult for the pace of home sales to begin to recover," Mr. Dienhart said.