BIASC Quarterly Report
The Southern California New Home Market is experiencing a strong rebound in Q2, with new home sales remaining robust despite a higher interest rate environment and limited options in the resale market. Builders are gaining pricing power as sales continue to exceed previous averages. Cancellations have stabilized at below-average levels, and the number of new home projects is near record lows due to a declining supply of available land and a lack of approvals for new communities. Meanwhile, the tight supply in the resale market, coupled with low foreclosure rates, is pushing prospective buyers towards new construction. Interest rate buydowns are still prevalent as builders use this strategy to attract motivated buyers to choose new homes over resale options.