Valley builder production slowed dramatically in 2007, according to U. S. Department of Commerce statistics.

A total of 950 building permits for single-family homes were issued in November — a 50 percent drop from a year ago. Permit activity began to fall steadily in May, which saw 2,851 single-family permits pulled.

Production has also diminished throughout the country. In 2007, an estimated 1.4 million building permits were issued, a 25 percent fall from 2006.

Experts say the slowdown in new builds is a good sign — allowing builders to get rid of existing inventories and hopefully bringing supply and demand closer to a balance. But the outlook for 2008 is still dim.

Builder confidence remained near a record low for the fourth month in a row in January, according to a monthly housing market index. The credit crunch and excess home inventories are continuing to plague builders and sellers of existing homes alike.

The National Association of Home Builders/Wells Fargo Housing Market Index gauges builder perceptions of sales, sales expectation for the next six months and prospective buyer traffic.

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