HOME BUILDING COOLDOWN

Home construction activity plunged 35.1 percent in July from June and condominium and apartment activity cratered 56.8 percent, said the California Building Industry Association. The overall market is down 43 percent from June.
The news is not all grim though, noted the Sacramento-based association.
It's release about last month's activity, as measured by the number of building permits pulled started this way.
“Although overall housing starts fell nearly 43 percent since June of this year, residential construction is still on target for production of 180,000 units...�
CBIA Chief Economist Alan Nevin said that new-home construction in California is expected to continue cooling off for the remainder of 2006 as the housing market adjusts from a superheated state to more normal conditions.
During the year's first seven months single-family activity is down 22.6 percent from a year ago. Multi-family activity is up 4.5 percent.
Total activity between January and July is off 15.9 percent from the year ago period.
Nevin said that builders will continue to reduce their standing inventory of unsold homes that are under construction or completed, and are now using aggressive marketing techniques to reduce their inventory.
“At the present rate, we anticipate that the inventory will be nearly depleted by the end of the third quarter.� Nevin said. “From that point on, builders will only build what they can pre-sell.�
In the Los Angeles area activity fell 39 percent from June and but is up 9 percent year-to-date.