Builders at River Islands at Lathrop earlier this year sold as many as 30 homes a week.
Now sales have dropped off to 6 homes a week.
River Islands CEO Susan Dell’Osso anticipates the 15,001-home planned community will finish out the year with more than 600 closed escrows.
In Manteca, long-time Realtor Jessie Barrett with HomeSmart said homes are still selling, just not as fast and as many as before..
Sales in both the new and resale markets are still taking place despite rates hitting 7 percent before dropping a half a point this week.
Based on a survey of real estate agents as well as new home builders, it has everything to do with the trend of hybrid work, price, and the fact the Bay Area core market has a dearth of desired stand alone single family homes especially when it comes to new construction.
It also helps that this is not 2008 with its toxic liar loan buildup that triggered a massive wave of foreclosures when the economy slowed.
River Islands requires its home builders to secure minimum 20 percent down payments.
In reality, many buyers are putting down more.
Dell’Osso said roughly a quarter of all home buyers are putting down more than 20 percent.
Barrett noted new home builders in Manteca are also offering financial incentives such as buy downs to make deals work. They are also working with resale agents.
Both Dell’Osso and Barrett indicated more and more buyers of new and existing homes in the region have employers that are moving forward with hybrid work weeks. That means the return to the office is not five days a week for many Bay Area employers whose workers are driving the Northern San Joaquin Valley housing market.
As such that takes a lot of the sting out of the commute not only in terms of hours on the road each week but the costs associated with commuting. It also helps that there is ACE service to San Jose and the rest of the Silicon Valley.
A National Association of Realtors survey released last year reflects the impact of a hybrid work week on regional housing markets.
The median distance buyers that are employed have moved from their previous home in the 12-month period ending in June was 50 miles. That compares to a constant 15-mile median distance during the previous five years.
Based on Association of Realtors market stats, there are 363 homes currently for sale in Manteca.
In October, Manteca’s median listing price was $625,000 and the median selling price was $550,000.
While both numbers are down compared with September the median prices are still 2.6 percent higher when comparing October 2021 with October 2022.
Homes spent an average 77 days on the market before selling.
In October, Lathrop’s median listing price was $708,000 and the median selling price was $675,000.
While both numbers are down compared with September the median prices are still 18 percent higher when comparing October 2021 with October 2022.
There are 216 homes for sale.
Homes spent an average 71 days on the market before selling.
In October, Tracy’s median listing price was $749,000 and the median selling price was $655,000.
While both numbers are down compared with September the median prices are still 2 percent higher when comparing October 2021 with October 2022.
There are 308 homes for sale.
Homes spent an average 58 days on the market before selling.
In October, Mountain House’s median listing price was $970,000 and the median selling price was $980,000.
While both numbers are down compared with September the median prices are still 10.4 percent higher when comparing October 2021 with October 2022.
There are 70 homes for sale.
Homes spent an average 68 days on the market before selling.
To contact Dennis Wyatt, email dwyatt@mantecabulletin.com
