Sales Up For New Homes

Strong demand and contiune low interest rates pushed new home sales across the state to their highest level in 20 years during 2005, with the best markets in Southern California.

Last year consumers bought 136,228 new homes up 4.4% from 130,480 in 2004.

Since the market start slowing down Builders are a bit more careful these days, that's acting as a hedge agains getting caught with an inventory overload that characterized the end of the 1980's market.

Los Angeles County had the state's third strongest market with 10,872 sales up 19.2%. The median price dipped 0.2% to $ 454,000.

These number include condo conversions and (that) activity increased sharply last year. Since they are lower cost homes, they pull down the median price.