October New Home Sales Rise in Northern California

Could plans for affordable housing in parts of the California housing market be paying off already?

It appears that way, a a housing construction trade association is reporting better new home sales for October over the same month last year for its member companies in the region.

The North State Building Industry Association reported 471 new home sales last month among the communities it tracks, about a 27 percent increase compared with the 372 homes in October 2005.

Despite the increase, this figure is still below the same period in 2004, when almost 600 homes sold among the new communities that report to the association and people were applying for mortgages left and right.

However, the October sales figures are an increase compared with September, when 430 new homes were sold.

The association’s membership includes about 65 percent of the home builders in the area and follows sales in 176 developments.

While the figures don’t give a complete picture of the region, they often show trends, industry experts say. The Building Industry Association covers a 20-county area in Northern Californi, including the East Bay housing market.