DQNews Archived Article

California Construction Up

by Real Estate Analyst John Karevoll
September, 1996

La Jolla, CA.— Construction activity in California increased again in August, led by continued growth in the home building sector, a real estate information service reported.

Funding for construction projects totaled $951 million in August, up 13.7 percent from $836 million in July, and up 16.3 percent from $817 million for August last year, according to DataQuick Information Systems.

"Well-planned projects that couldn‰t get financing a year or two ago are now coming on line. Lending institutions that wouldn‰t even talk to builders a couple of years ago, are now providing funding," said Mike Ela, DataQuick president.

Construction loans have totaled $6.39 billion statewide so far this year, up 24.6 percent from $5.13 billion for the same period last year. The current year-to-date total is the highest since $6.54 billion for the same period in 1991. The recession low was reached in 1993 when construction financing totaled $4.20 billion.

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.

The year-to-date increase in building activity is strongest in Alameda, San Francisco and Los Angeles counties. The increase is weakest in parts of the Central Valley, DataQuick reported.

Source: DataQuick Information Systems

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

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