July 17, 2024
San Diego condosSACRAMENTO — California homebuilders continued to cut back on production in July, as buyers continued to wait and watch, exacerbated by the recent financial turmoil in the credit and lending industries, the California Building Industry Association reported today.
Total housing starts in California, as measured by building permits issued, fell by 22 percent in July when compared to the same month a year ago. According to housing permit data supplied by the Construction Industry Research Board, production of single-family homes fell by nearly one third while multifamily units saw a slight increase in permits being pulled when compared to July of 2006.
CBIA Chief Economist Alan Nevin said that builders and lenders are waiting for a signal from the market telling them to move forward, with most not yet convinced that now is the right time. As a result, builders are holding off on production in order to continue selling down their existing inventory of homes.
He warned potential buyers, however, that when the market does turn, it will probably turn quickly.
“In California, the market has historically been a ‘V’ shape in that when it turns around, it does so with great enthusiasm,” Nevin said. “As California’s economy remains strong and the job market solid, we believe the ‘V’ phenomenon will occur once more, though we hesitate to put a date on it.”
In July, permits were pulled for 5,675 single-family homes statewide, down 32.5 percent from July 2006 and down 15 percent from the previous month, while multifamily housing starts — condos and apartments — totaled 3,355, increasing 4 percent from July 2006 and up 11 percent from the previous month.[tags]California housing,California real estate,California homebuilders[/tags] San Diego real estate agents


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