Irvine-based Standard Pacific Corp. said that its new-home orders are down 13% to 1,431 this year.
The homebuilder said in a statement late Monday that it’s seeing lower demand in some markets “from the unsustainable pace of the past few years.”
Standard Pacific said the decline began in the fourth quarter. Homebuilders have seen slower orders amid rising interest rates during the past two years and the surge in the housing market, which has priced out many people from the market.
“This slowing of sales activity is particularly evident in markets which have experienced significant price increases and investor-driven demand in recent years, such as California and Florida,” the company said.
Orders in California are down 37% this year, versus a year earlier. The homebuilder saw gains in Texas and Arizona, with declines in Florida, the Carolinas and Colorado.
Standard Pacific said it’s selling homes at 186 communities, up 15% compared to a year ago.
Southern California orders has been a particularly weak spot for Standard Pacific, with one exception: the Inland Empire.
“New orders were up, however, year over year in the Inland Empire, our largest and most affordable division in the region,” the company said.
It attributed lower orders in Southern California to “a softening in buyer demand, most notably in San Diego and, to a lesser degree, in Orange County.” Fewer available homes and an increase in the cancellation rate, also were factors.
The company’s cancellation rate rose from 18% last year to 26% this year.
Standard Pacific’s shares were down 3% Tuesday.
