CALIFORNIA HOUSING STARTS FELL 14 PERCENT IN JUNE

August 20, 2007

Total housing starts across California slipped 14 percent in June from the previous month, according to the California Building Industry Association (CBIA), based on data supplied by the Construction Industry Research Board.
Single-family home permits pulled totaled 6,533 statewide in June, reflecting an 11 percent drop from May, and a 50 percent decline from June 2006. The number of permits pulled for multi-family housing, including condominiums and apartments, was 3,003, down 18 percent from the previous month and 54 percent below June 2006 figures.

Housing starts for the first half of 2007 fell 33 percent to 64,153, compared to the same period in 2006. Single-family permits dipped 36 percent, while multi-family starts fell 26 percent for the first half of this year.

"Major declines were noted in the San Francisco/Oakland/San Jose area," said CBIA Chief Economist Alan Nevin. "Multi-family permits there were down 42 percent for the first six months of the year. Multi-family declines in Los Angeles were only 13 percent."

Economists suggested home buyers could take advantage of lower production levels as developers continue to focus on reducing inventories during the market slowdown. Between resale homes and new homes - as inventory tightens, prices normally increase.  It becomes ’supply and demand’. "If there is a silver lining in this cloud, it is for homebuyers," said CBIA President and CEO Robert Rivinius. "It is a great time to be out shopping and making an excellent deal on a new home.

Posted in All Things San Diego, Helpful Hints, Lending, Local Business, Real Estate, Things of Interest