HOUSING GLUT PUTS DAMPER ON STARTS BUILDERS FOCUSING ON INVENTORY SALES.Byline: GREGORY J. WILCOX Staff Writer California's housing production fell 22 percent in 2006, the second consecutive annual decline as the state's residential real estate market endured its toughest time in years, a trade association said Thursday. Last year builders pulled permits for 163,449 houses, condos and rental- apartment units, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Sacramento-based California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Building Industry Association. Of those, 106,953 permits were for single-family homes, an annual decrease of 31 percent, and 56,496 permits were for condos and rental apartments, an annual increase of 5.3 percent. ``What we've seen is that the single-family builders pulled back very quickly,'' said Jack Kyser, vice president and chief economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the at the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County Economic Development Corp. ``They would walk away from land on which they made nonrefundable Nonrefundable Not permitted, under the terms of an indenture, to be refundable. deposits.'' And he said that there has been an uptick Uptick A transaction occurring at price above its previous transaction. In order for an uptick to occur, a transaction price must be followed by an increased transaction price. in the number of auctions of new condos and town homes. The full-year numbers are tepid tep·id adj. 1. Moderately warm; lukewarm. 2. Lacking in emotional warmth or enthusiasm; halfhearted: "the tepid conservatism of the fifties" Irving Howe. at best. ``The single-family building- permit count came in decidedly weaker than we had anticipated when we prepared our revised midyear mid·year n. 1. The middle of the calendar or academic year. 2. a. An examination given in the middle of a school year. b. midyears A series of such examinations. 2006 projections,'' wrote the state building association's chief economist, Alan Nevin. That revision called for 125,000 to 135,000 building permits for single- family houses, he said. Three metropolitan areas accounted for the lion's share of the declines: the Inland Empire In·land Empire A region of the northwest United States between the Cascade Range and the Rocky Mountains, comprising eastern Washington, eastern Oregon, northern Idaho, and western Montana. Farming, lumbering, and mining are important to the area. , Sacramento and San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. . In the Los Angeles, Long Beach and Glendale areas, single-family housing permits fell an annual 15.1 percent, to 10,114, in 2006. In December, the number of these permits fell 26.1 percent to 597 units. The number of multifamily permits increased an annual 18.1 percent to 16,227 units. In December, they rose an annual 7.6 percent to 1,436 units. Statewide for December, permit activity for single-family houses fell an annual 44.3 percent, to 5,482, while multifamily activity increased 38.1 percent to 5,170 units. Nevin attributes the dropoff to a normalizing market and the fact builders have scaled back on starts to concentrate on selling their already-completed inventory. He said that new-home construction in California will continue leveling off until builders sell off their remaining inventory, a process that probably won't be completed until early this year. In his 2007 Housing Forecast, Nevin expects housing starts for single- family homes, condos and rental apartments to total 155,000 to 170,000 in 2007, keeping pace with 2006. Nevin noted that 2007 will still be a solid year for production. ``We are returning to a normal market,'' Nevin said. ``Producing 155,000 to 170,000 units will be more than in any year from 1991 to 2001 and could exceed production levels from 1990 and 2002 as well.'' The builders association state president and chief executive officer, Robert Rivinius, said that about 240,000 new homes, condos and apartments are needed each year to meet the need for housing. And the association continues to stress its message that new construction isn't keeping pace with demand. ``Unfortunately, we haven't hit that level since the late 1980s, and unless major reforms are enacted at the state level to allow increased production, it does not appear that we will reach it anytime soon,'' Rivinius said. California needs new homes in all price ranges, he added. greg.wilcox(at)dailynews.com (818) 713-3743 |
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