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February 28, 2008

arrowNew home construction continues decline

The number of houses built in Fresno County fell almost 57% in January from a year previously as builders continued to struggle with decreased demand, a trade association reported Thursday.

Last month, 141 houses were built compared with 327 in January 2007, the California Building Industry Association reported. The production level also was down 27.7% from December.

In Tulare County, housing starts were off 56.8% from a year previously and 17.2% for the month. The association attributed part of the decline in January to revised building standards effective Jan. 1, which resulted in a rush to get building permits reported in December 2007 rather than after the new year.

However, building officials acknowledged sluggish consumer demand as well. “We have rarely had a situation where interest rates are low and the California economy is stable and yeat there appears to be a hesitancy among potential home buyers to mek the critical purchase decision,” said Alan Nevin, the association’s chief economist.

Statewide, single-family permits were off 62% in January from a year prior.



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