Irvine’s California Coastal Communities Inc. is the latest homebuilder to lower sales expectations for the remainder of 2006, citing increased cancellations and an industrywide slowdown in the local housing market.
The company expects to deliver 150 to 175 homes in Southern California this year, compared to previous projections of more than 200 homes. California Coastal delivered 113 homes last year.
“The Southern California housing market has continued to soften,” said Raymond Pacini, chief executive of California Coastal.
A total of 28 homes were delivered in the first quarter, in Riverside and San Bernardino counties, in Lancaster, part of northern Los Angeles County and in Rancho Santa Fe San Diego County.
The company also recently started initial work on a 105-acre development in Bolsa Chica, following nearly 30 years of environmental fights over the Huntington Beach site.
The news came as part of California Coastal’s second-quarter earnings release. The company reported profits of $1.2 million, on $18.8 million of revenue. Revenue was up 506% from a year ago.
The average price of the company’s homes delivered in the quarter decreased to $671,000 from $775,000 a year ago. That reflects a lower price level of homes in Lancaster compared with homes in the Inland Empire, the company said.
