SACRAMENTO REGION, CA (MPG) - Economic uncertainty and an increase in the number of existing homes on the market led to a decline in new home sales in the Sacramento region in March, the North State Building Industry Association reported on April 8.

Building Industry Association members sold 472 homes during March. That is down 9% from February, down 22% from March 2024 and 11% below the average number of sales reported during the month. March sales were the lowest for the month since the COVID-19 pandemic year of 2020 but were in line with sales immediately preceding the pandemic.

North State Building Industry Association President and Chief Executive Officer Tim Murphy said the primary reason for the drop-off appears to be the decline in stock markets and concerns about the economy. This comes as the United States and its trading partners impose new tariffs.

“Our members reported that the number of people visiting their communities last month was similar to levels from January and February, indicating that prospective buyers are still interested in purchasing a new home,” Murphy said. “But given the economic uncertainty, many appear reluctant to pull the trigger.”

“In addition, while still below pre-pandemic levels, the number of existing homes on the market in the region is up by about 20% from last year, giving prospective buyers a larger pool to choose from.”

The most sales were the 264 reported in Sacramento County new home communities, followed by 134 homes in Placer County, 35 homes in the Yuba-Sutter market and 20 homes in El Dorado County.

Roseville remained the most active submarket with 101 sales, followed by Rancho Cordova (76), Sacramento (60), Elk Grove (56) and Folsom (27.) Natomas and Plumas Lake tied for sixth with 22 sales, followed by El Dorado Hills (17), Lincoln (16) and Antelope (13).

Building Industry Association statistics include sales by members in Amador, El Dorado, Placer, Sutter, Yolo and Yuba counties.

Representing more than 500 members who provide 55,000 industry jobs, the North State Building Industry Association is committed to preserving and furthering the economic interests of its members. It also works to enhance the industry's standing as a significant contributor to the regional economy. For more information, visit northstatebia.org.