New Home Sales Plummet in Los Angeles County
A report released by the California Building Industry Association this week showed new home sales in Los Angeles County fell by 57.6 percent in June year-to-year. Last June, 800 new homes were sold in the county, while only 339 sales were completed in June 2010. New homes typically represent about ten percent of the overall market.
Total home sales last month fell by 13 percent across the nation and 22 percent within the state, while LA County suffered a
drop of 19.5 percent in sales of all types of homes. Analysts predict the new homes market will likely struggle as long as
unemployment remains so high. Home sales across the six county Southern California area had their biggest drop in over two
years in June after federal tax credits for homebuyers expired at the end of April. Analysts blame the expiring of the tax
credits in conjunction with record unemployment as the primary causes for the deplorable state of the housing market. Market
experts almost unanimously agree that the expiration of the tax credits will impact sales throughout the summer, and that until
unemployment comes down and distressed property inventory subsides, the market will be unable to sustain a lasting recovery.