Housing starts in California slipped in August, falling 5% from July and 37% for August a year ago. The slide was hastened by the end of California's generous $10,000 home buyer tax credit, according to the California Building Industry Association. "When it was in effect, the tax credit was beginning to turn things around," said CBIA President Liz Snow. "Since the program stopped in July -- only four months after it started -- activity dropped off dramatically." According to the Construction Industry Research Board, builders pulled permits for just 2,911 housing units statewide in August. CIRB now is forecasting only 39,500 housing starts in 2009, which would be by far the lowest total on record.
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