The Building Industry Association of Superior California reported Wednesday 8,123 new-home sales in the first 10 months of 2004 in the 133 new-home communities it tracks on a weekly basis. Sales were up by 9 percent over the same period in 2003. However, sales in October 2004 were lower by 12 percent than in October 2003 and were lower by 30 percent over sales in September 2004.

Still, visitors to new-home communities reached 37,071 in October, more than any October in the past 12 years.

In October, the Vineyard/South Sacramento (Elk Grove) area recorded the highest percentage of sales (26.5 percent). Placer County (Granite Bay, Lincoln, Rocklin, Roseville) had 16.5 percent of the sales in the region. The Antelope, North Highlands, Natomas, north Sacramento area had 15.5 percent of the sales, while the "Northeast Suburban" area (Citrus Heights, Fair Oaks, Gold River) totaled 13 percent of new home sales sales.

In other highlights of the report :

* 49 percent of new home sales in September were priced at $400,000 or below.

* 34 percent of sales fell in the $400,000-500,000 range. The remaining 17 percent of new homes sold were priced in the $500,000 and up range.

* 30-year fixed-rate mortgages averaged 5.64 percent for the week ending Oct. 28, down from the previous week when it averaged 5.69 percent. Last year at this time, the 30-year fixed-rate mortgages averaged 6.05 percent.

"Home sales are very sensitive to mortgage rates," Frank Nothaft, Freddie Mac chief economist said in the BIA statement. "Low mortgage rates drove the uptick in sales during September. And with mortgage rates at their lowest level in six months, home sales should continue strong through the autumn months.

"Our latest forecast expects a brisk housing industry through year-end. Single-family building is likely to remain strong this quarter, as evidenced by the pace of recent new-home sales. Overall, the economy remains supportive of both new and existing homes."

According to the report, the unemployment rate in the Sacramento Metropolitan Statistical Area was 5.0 percent in September 2004, stable from the revised rate for August 2004, and below the year-ago estimate of 5.4 percent. This compares with an unadjusted unemployment rate of 5.7 percent for California and 5.1 percent for the nation during the same period. The unemployment rate was 4.3 percent in El Dorado County, 4.3 percent in Placer County and 5.2 percent in Sacramento County.

The total number of wage and salary jobs in the Sacramento MSA increased from 756,800 in August to 759,000 in September 2004, a gain of 2,200 jobs that largely reflected seasonal gains and losses. Although state jobs continued to decline, government payrolls rose by 2,200 jobs, due to gains in local education. Also adding jobs, professional and business services expanded by 1,000; trade, transportation and utilities by 500; manufacturing by 400; financial activities by 300; while educational and health services were up by 100. Offsetting those gains, leisure and hospitality declined by 1,000 jobs, farm slipped by 600 and construction shed 500 jobs. Jobs in information and other services were down by 100 each and employment was unchanged in natural resources and mining.

Between September 2003 and September 2004, total wage and salary employment was up by 1,300 jobs, a 0.2 percent increase, with private sector gains outpacing government losses. Construction gained 5,300 jobs, followed by professional and business services, which added 2,400 jobs. Trade, transportation, and utilities expanded by 600 jobs, farm by 400, educational and health services by 300, while leisure and hospitality and other service jobs were up by 100 each. Offsetting those gains, government payrolls declined by 6,300 jobs, information by 800, financial activities by 500, and manufacturing by 300 jobs. Employment levels were unchanged in natural resources and mining.

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