Housing Production in Calif. Falls in July

According to statistics compiled by the Construction Industry Research Board, homebuilders pulled permits for 3,011 total housing units in July, down 14 percent from June. Permits for single-family homes totaled 2,045 in July, a 29 percent decrease from June, when builders pulled permits for 2,864 units, according to the report. June’s tally was the highest since July 2008.

California homebuilders pulled back on new-home production in July as home buyers retreated from housing markets around the state following the discontinuation of the successful home buyer tax credit early in the month, the California Building Industry Association recently announced.

“Our homebuilders reported a significant drop in traffic last month, largely due to the state closing the window on the home buyer tax credit,” said Robert Rivinius, CBIA’s President and CEO, who noted that the Franchise Tax Board stopped taking applications for the $10,000 new-home credit at the beginning of July. “With the advent of the credit in March, our homebuilders reported shoppers returning to housing markets in droves,” said Rivinius. That, he said, led to an immediate increase in sales and, ultimately, new home starts.

CIRB also announced that it is revising its forecast downward from 40,000 total units to just 39,500 total units in 2009, which would be by far the lowest total on record.


Source: California Building Industry Association