Lennar Division President Mike Miller said the price of building materials, land and fees continued to impact housing prices.
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Miller explained, "Everything has gone up so much that the only way you can get the price down anymore is you got to go smaller in the home site size, and so the market is ripe for the town home-type products so that way, you can get more density."
The two-bedroom townhomes could fit into a smaller footprint at just under 1,200 square feet.
They were also going up in the area of Peach near Herndon in Clovis and prices started at $341,000.
Miller said, "Price is a factor and that's one of the major reasons why we rolled out with the townhome, is trying to get the price down and make it more affordable."
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The homes have been popular among buyers even though the model homes weren't even finished yet.
Miller said, "I was pleasantly surprised. There was high demand and we sold out of our initial release in a matter of days."
Both sites still had some townhomes available.
Miller added Lennar was currently building 27 new communities in the Valley, from Bakersfield to Merced.