Southern Colifornio Building ForgesRighr Aheqd Despite Depressed

Nationol Totols

(The follou,ing intcresti,ng article on, Sowthern Califoruia bwilding this.tcor is relrinted from the colwnrm of Charlcs C. Colnn, real cstatc editor, in The Los Anqeles Times):

Southern California economic facts and figures at hancl disclose a surprising building surge, maybe indicating a continuing btrilding pace heacling to astonishing records for 1957, for while at start of this year 1957 in-as generally hailed as another goocl year, there \^ras a lot of questioning whether it would top or even equal the remarkable record breaking of 1956.

Well, what did the first-third of 1957 do to give this year's other two-thirds such a fine start ?

In the first four months of this year an an'iazing volume of new construction of all kinds was launched in Southern California, according to first flow of reports reaching this desk. A Southlancl year's total of around 3 billion dollars may be in the rnaking.

How's this for trend? In April, $57,09.5,189 worth of building pern-rits u'ere issueci in Los Angelcs-$2O,.595,384 more than in April last year. In this year's first thirtl, $177,437,202 wortlr of building pernits were issuccl in l-.A.-$29,360,346 more than in thc like time last year.

This city's total volunte in all of 19.56 reachcrl a new peal< of $484,962,749. Los Angelcs' building pace so far this year suggests thc possibility of about $500,000,000 for 1957.

How about resiclential supply to help meet demancl increasecl by unceasing ir-rflux of new residents and other causes? For instance, in just this April, 1620 building permits, rvith 923,233,278 valuation, were issued for single-family homcs in this city; 25 perrnits with $312,700 value, for duplcxcs; 193 pern-rits, totaling $9,542,07 1, for apartment structures.

Home-loan lroney is a very mncl.r consirlerecl subject. National reports fronr authoritativc sourccs are cncouralling. President J. Stanley Baughman of the Federal National N'Iortgage Association, has brightened the glow of the outlool< from this far along in the year by preclicting "an easing" in the market for residential n.rortgage money. That, of corlrse, fileans a replenishing of home-loan funds because FNMA buys and resells FHAinsured and VA-guaranteed mortgages. He made his prediction in revealing, a few days ago, that in this year's first quarter, the FNNIA added 33,845 mortgages valued at 9388,000,000 to its secondary n-rarket operations program portfolio. The repayment record of such mortgages has been excellent through the years.

A huge volume of conventional home loans, those not insured ol guaranteed by governr-r-rent procedure, also has been going into homeownership as this year has advance<l. Obviously, all this cleeply interests Southern California, the n'orlcl's homebuilding pace setter.

The Southlancl's further big incrcase in inclustrial and otl.rer strcngth also contributed to the Southern California economicactivity surge in the first thir<l of 1957 and pronriscs of its continuance this year arc subjects of news reports that r.nake hnppy reading.

(Tcll thent, you saw it in The California Lumbcr Merchant)