Builders Step on the Brakes, Permits Fall "Dramatically" in March

From the Sacramento Bee:

Permits to build more new homes in the Sacramento area fell dramatically in March from the same time a year ago, many of the region's fastest-growing cities reported Tuesday. The reports, which often are an indicator of builder confidence in the housing market, mirrored a similar slowdown across the West, the U.S. Department of Commerce said Tuesday...

Roseville officials attributed their dip to holding up permits while waiting for infrastructure improvements in the city's growth areas. Lincoln officials said their decline may reflect the winding down of Sun City Lincoln Hills. In Elk Grove, part of the decline comes from last month's lack of multifamily permits after the city issued permits for 192 apartments in March 2005.

Whatever the reasons, builders in El Dorado, Placer, Sacramento and Yolo counties clearly stepped on the brakes in a housing market that is down from its 2003 peak of nearly 23,000 permits and has slowed more since last summer. Along with wet March weather, builders are contending with 30-year mortgage rates that reached a near four-year high of 6.49 percent last week and a growing inventory of unsold existing homes...

Last year, builders in the four-county Sacramento region were issued permits for 15,630 homes and 2,863 apartments and condos.

Chart at the bottom:

Lincoln
3/2005: 186
3/2006: 105

Roseville
3/2005: 121
3/2006: 39

West Sacramento
3/2005: 124
3/2006: 21

Elk Grove
3/2005: 495
3/2006: 30

Rancho Cordova
3/2005: 50
3/2006: 14