Some California Builders Are Raising Prices

Has the tide finally turned in California? A survey of home builders in the Golden State suggests it has. According to a poll by John Burns Real Estate Consulting, more builders are now raising their prices than are lowering them — or even keeping them at their current level. It's the first time that's happened since the Irvine-based consulting firm began its home builder executive survey 15 months ago. But reports of emerging price stability in a growing number of markets also were balanced by numerous reports of continued downward pressure on pricing from foreclosures and short sales, according to the consultant. In almost all markets, the lower price points are faring better than the higher price points due to government-backed financing and the $8,000 federal tax credit. The survey covered 269 industry executives from both public and private firms, including 62 in California. Together, their insight is said to be reflective of "on-the-ground conditions" in 86 metro areas and 1,855 new home projects.