Slight Gain in New Home Sales in California

New home sales in California in August rebounded somewhat from July's low levels, but they were still 13% below the same month last year, according to the California Building Industry Association. The monthly CBIA/Hanley Wood Market Intelligence sales and pricing report counted 2,617 house and condominiums sales in the subdivisions with 10 or more units in August compared to 3,001 in August 2008. Single-family sales were down 20% and sales of townhouses and multiplex units were off 35%. Condo sales, on the other hand, were inexplicably 26% higher than a year ago. CBIA president Liz Snow blamed the decline on the end of the state's $10,000 homebuyer tax credit, which she said came "too soon." Said Ms. Snow: "The best thing you can say about California's experience with the state homebuyer tax credit is that it worked. It did everything it was supposed to do: restore buyer confidence, stimulate activity in dormant housing markets and put people back to work." She added that the latest dismal sales figures "should encourage lawmakers to revive the program."