Business

Developers slash home prices but capture few sales in San Joaquin Valley

Construction at the Trails at Falling Leaf in northeast Modesto has stopped.  The developer cut prices at least three times, but no homes are for sale now.
Construction at the Trails at Falling Leaf in northeast Modesto has stopped. The developer cut prices at least three times, but no homes are for sale now. Modesto Bee

Foreclosed houses aren't the only bargain-priced homes in the Northern San Joaquin Valley: New home builders have sliced prices to stimulate sales.

Just-released sales data shows new Stanislaus County single-family homes sold for a median $315,900 during May. That's $100,010 less than the median sales price in May 2007 and $129,090 less than May 2006.

Even with the price cut, however, sales are sluggish. Just 69 new homes sold countywide in May compared with 203 in May 2006, according to California Building Industry Association statistics.

The new home sales market was even worse in Merced County, where May's median price was $243,990. That was $116,910 less than it was last May. Sales there have been plummeting, falling from 156 new houses in May 2006 to just 30 in May 2008.

In San Joaquin County, a single-family home sold for a median $415,000 in May, which was $71,950 less than in May 2007 and $94,190 less than in May 2006. Just 44 homes sold in May compared with 205 in May 2006.

Statewide, single-family homes sold for a median $363,000, a decline of $73,000 from last year and $91,990 from two years ago. May sales fell to 2,252, compared with 4,799 in May 2006.

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