Housing Starts in California to be Flat

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The housing market in California is going to have a slow year for 2006. The marketplace is expecting to see employment in the construction industry to have a modest pullback according to the California Building Industry Association. Of course the reporter found a University Professor ready to get his name in print.

Christopher Thornberg, senior economist with the UCLA Forecast, expects housing construction to drop by 25 percent next year, resulting in significant job loss for the construction industry.

He said the CBIA’s pricing prediction could prove true, but he hopes it doesn’t because he believes prices are already “out of whack with reality.”"The real question is, is it a good thing if they go up and the answer is clearly ‘no,’” he said. “It will just make things that much worse and it will take that much longer to correct.” ContraCostaTimes.com

Isn’t it a wonderful thing to have a professor ready to proclaim doom and gloom. I will be looking for the reality a year from now when the actual numbers come in.