Building Group Says Calif. Housing Slump to Bottom Out Next Year

Sacramento, Calif.–California’s housing decline–considered one of the nation’s worst–will hit bottom in 2008, according to the California Building Industry Association.The Sacramento, Calif.–based building industry trade group released a forecast Thursday that predicted developers will gain 10 percent more permits for 128,400 single-family and multifamily units this year, the The San Francisco Chronicle reports. The estimated number of permits in 2007 was 116,250, which was a 29 percent fall from the year before.The increase should start in the second half of 2008, the group said, as a result of population increases, lowered interest rates and a growing U.S. economy.However, several economists expressed skepticism about the California Building Industry Association’s rosy outlook.