DQNews Archived Article

California construction up

by Real Estate Analyst John Karevoll
October, 1997

La Jolla, CA.— Building activity in California jumped to its highest level in six years for the third quarter, the result of rising home prices and a rapidly expanding economy, a real estate information service reported.

Construction financing totaled $3.56 billion for the July-to-September period. That was up 26.3 percent from $2.82 for the previous three-month period, and up 25.3 percent from $2.84 billion for last year's third quarter, according to DataQuick Information Systems.

This year's third-quarter dollar volume was the highest since $3.73 billion for third-quarter 1991. Building activity is currently at twice the bottom 1993 levels.

"This is money that gets pumped directly into the economy through job payrolls and supply expenditures. The expansion of the building sector is steady and we expect construction activity to grow well into next year," said Mike Ela, DataQuick president.

Southern California showed the strongest increase in building activity, with Los Angeles County going from $317 million a year ago to $520 million for the third quarter, a 63.2 percent increase. Construction levels are still flat in the Central Valley.

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

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1997 DataQuick Information Systems.
All rights reserved.

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