Irvine-based homebuilder Standard Pacific Corp. said Monday that new home orders in July and August were up 20% from a year earlier.
Home orders were up nearly 100% in California, while orders in Arizona increased by 42% from last year’s levels. Orders were down 24% in Florida, 13% in the Carolinas and 5% in Texas.
The big gains in California and Arizona have much to do with weak sales a year earlier, Standard Pacific said. The company noted that last year’s third quarter order levels were down 58% compared to the 2005 third quarter.
“Our absolute sales absorption rates continue to reflect the difficult housing conditions in most of our markets which were exacerbated during the quarter by the further tightening of available mortgage credit for homebuyers,” the company said in a statement.
Standard Pacific said it expects to take additional impairment charges in its third quarter, due to continued pressure on home prices.
The company said that its cancellation rate for July and August was 33% compared to 51% in the year earlier period, and 28% in the 2007 second quarter.
