The pace of new home sales across California in August declined 39 percent from August 2007, according to the latest CBIA/Hanley Wood Market Intelligence (HWMI) New Home Sales and Pricing Report released today, representing a significantly smaller decrease than the 57 percent year-over-year decline a month earlier, according to the report.

Sales of new single-family homes were down 41 percent in August, while sales of townhomes and “plexes,” (duplexes, triplexes, etc.) were down 17 percent, and sales of condominiums were down by nearly 43 percent, according to the report.

“The broad credit issues affecting lending institutions nationwide mean that all homebuilders and their potential customers face a number of challenges,” said Jonathan Dienhart, director of Published Research for HWMI. “Until credit markets begin to get back to a more normal level of activity, it will be difficult for the pace of home sales to begin to recover.”