California Returning to 'Slow Growth'? --ZT

The term slow growth was the bane of the homebuilding
business for years, but now builders in the Golden State,
where a modest recovery is expected to begin sometime
around midyear, welcome the idea.

Alan Nevin, chief economist of the California Building
Industry Association, is projecting a slight increase
in new-home sales in 2008. He bases his forecast on
continued population growth, a continued reduction in
inventory, and a return to normalcy in the credit markets. Specifically, Mr. Nevin is projecting sales of 80,000
new houses this year vs. about 70,000 in 2007.