SACRAMENTO – California’s beleaguered new-home market should begin a modest recovery this year, but won’t really rebound until public policy reforms to streamline the building process and promote construction of more-affordable new homes, the California Building Industry Association (CBIA) announced today.
In 2008, CBIA Chief Economist Alan Nevin predicts that the market will demonstrate a slow growth.
“By mid-2008 the housing industry will show signs of growth,” Nevin said during a media conference call today. “Continued population growth, a reduction of existing inventory and a return to normalcy in the credit markets are a recipe for a more positive 2008. As a result, we are projecting a slight increase in new home sales over last year.”
Specifically Nevin predicts that new-home sales will increase in the second half of 2008, leading to the construction of more than 80,000 new single-family homes this year, up from about 70,000 last year. He also expects production of condominiums, apartments and townhomes to increase to about 46,700, compared to about 44,000 in 2007.
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