DQNews Archived Article

California Building Reaches Highest Level This Year

by Real Estate Analyst John Karevoll
September, 1995

La Jolla, CA.—August building activity in California jumped to its highest level so far this year, a real estate information service reported.

Funding for construction projects totaled $840 million last month, up 46.2 percent from $575 million in July, and down 1.4 percent from $852 million for August last year, according to DataQuick Information Systems.

The surge in building activity was particularly strong in the Bay Area. Funding for projects in the region totaled $271 million, up 74.5 percent from $155 million the previous month, and up 55.9 percent from $174 million for August last year.

DataQuick monitors all real estate activity in California and other states and provides information to consumers, lending institutions, title companies and industry analysts. The overall numbers include all construction loans, commercial as well as residential. A construction loan is typically recorded a few days before building activity actually begins.

Construction activity reached an all-time peak in 1988/89 when monthly financing sometimes exceeded $3 billion. A low was reached during the first half of 1993 when the monthly numbers came in below $500 million for six months in a row.

So far this year, construction projects totaling $5.26 billion have been started statewide. That figure is up 3.1 percent from $5.11 for the same period last year, DataQuick reported.

Source: DataQuick Information Systems

For more information call John Karevoll (909)867-9534

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