It appears that new-home prices have risen sufficiently to dampen demand in California's Orange County. The Orange County Register's Jonathan Lansner reports:
Orange County homebuilders are trying to sell their largest supply of completed new homes in 12 years.
According to Metrostudy, local builders had 1,022 newly constructed residential units ready for immediate sale in the second quarter, up 340, or 50 percent, in a year. That’s the highest level since the end of 2006. For those who get antsy about overbuilding, builder inventories averaged 458 in the previous boom years of 2004-2007.
This growing supply comes as Orange County builders may have cooled their construction pace. Metrostudy found 2,780 residential units under construction, off from the recent peak of 3,087 in last year’s third quarter — the fastest development pace since 2006. Note: Construction averaged 3,012 units in 2004-2007. One change in how builders work is constructing smaller communities. That increases the number of model homes to sell: 386 in use in the second quarter, up 12 in a year. Models averaged 274 in 2004-2007.