California Builders Say The Worst is Over

January 27, 2008

A California trade group is predicting that the state’s housing slump is near bottom and business will rise steadily.

In a forecast released Thursday, the California Building Industry Association said developers will secure permits for 128,400 single-family and multifamily units this year, up from an estimated 116,250 in 2007. The 10 percent gain is in contrast to the 29 and 21 percent drops in housing permits in 2007 and 2006, respectively.

"We believe that California has weathered the subprime storm of 2007, the market has almost corrected and that 2008 represents an opportunity to move forward," said Alan Nevin, the Sacramento association’s chief economist, on a conference call.

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