Report: Yuba County sells new homes; Sutter County loses four

Robert Summa, Appeal-Democrat, Marysville, Calif.
·3 min read

Nov. 10—According to a report from the North State Building Industry Association, Yuba County continued to sell more new homes for the month of October while Sutter County actually reported negative sales.

Similar to numbers reported in September, 25 new home sales were sold in October in Yuba County, according to the association. Meanwhile, Sutter County, which typically does not have a significant number of new home sales each month, actually reported the loss of four new home sales for the month.

Officials with the building association said the negative sales for Sutter County were reported because of "more previous transactions being canceled than new sales reported during the month." The county is restricted in the number of new homes that can be built because it is in a designated floodplain that prevents most new construction.

"The natural features that lend to the pleasant aspects of the countryside and country life we enjoy come at a cost. They severely restrict the ability of the county to attract economic development and generate revenue for county services," Sutter County Administrator Steve Smith has said. "More than 68% of Sutter County's land mass is in either a federal or state designated flood zone, where the cost of raising buildings to a safe elevation is often too great to encourage development. No other California county is handicapped by federal and state floodplain policy to such an extent. (Yolo County, the county with the next highest percentage of its land in a flood zone, is at about half of Sutter County's percentage)."

Overall, the North State Building Industry Association, which represents Sacramento, Placer, El Dorado, Yolo, Yuba, Sutter, Amador and Nevada counties, said the new home market in the greater Sacramento region seems to have "settled into a slower but more steady pace as buyers continue to adjust to significantly higher mortgage interest rates."

According to the association, its member builders sold 217 new homes in 209 communities in the eight-county region for the month of October. In September, 279 new home sales were reported.

"These are challenging times for housing as many prospective buyers are having to adjust to the rapid run-up in mortgage rates this year as the Federal Reserve continues to raise rates to fight today's high inflation," Michael Strech, North State Building Industry Association's president and CEO, said in a statement. "But there are still buyers who want to buy a new home for all of the advantages owning a new home in our region provides and who recognize, as the old saying goes, that you buy a home but you rent your mortgage. There are families willing to pay 7% for a mortgage today because they expect to refinance in a few years if inflation is curbed and rates retreat."

According to October's report, Placer County led the region with 102 new home sales reported, followed by Sacramento County with 88. During a recent housing conference, it was revealed that "Roseville alone accounted for 22% of all sales in the area this year" with about 40 "active new home communities" accounting for the large percentage.