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California housing production falls in February

Real estate brief

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The California Building Industry Association reports that housing production in the state fell again in February, a decline that has been continuous since its peak in 2005 (see Inman News). According to CBIA statistics, single-family permits totaled 1,261, down 50 percent from last year, while multifamily permits totaled 1,037, down 76 percent from last year but up 41 percent from January. A total of 2,298 home-construction permits were pulled throughout California during February, down 66 percent compared to February 2008 but up 15 percent from January. CBIA officials said the increased traffic from last month was a result of the recently enacted state and federal tax credits. California has passed as a part of its latest budget package a tax credit for new-home buyers that is equal to 5 percent of the purchase price or $10,000 -- whichever is less. The federal government also passed a federal tax credit of $8,000 for first-time homebuyers. Robert Rivinius, CBIA's p...