California Mortgage Demand Surges in January; Sacramento Sales Increase

If 2006 was a “transition year” for the California housing market, then maybe 2007 will simply be a strong one.

January new-home sales in Northern California reached their highest level since mid-2005, the North State Building Industry Association reported Friday.

The group tracks sales and/or California mortgage activity in 186 communities in 20 counties in Northern California, excluding the San Francisco Bay area, representing about 60 percent of the new home market in that area.

Among those communities, there were 702 new-home sales in January, up 85 percent from the 379 during the previous month and up 44 percent from 486 in January of 2006.

The majority of the homes were priced between $400,000 and $600,000, according to the association. This shows that California mortgage loan demand is largely peaking for those in higher income brackets.