June's National Homeownership Month began this week with some heartening news for homebuyers. The first news arrived with a national survey of economists conducted by the National Association for Business Economics in which 90 percent of economists surveyed predicted the recession will end this year.

A presentation in May in San Diego from economists with the UCLA Anderson Forecast - which reports on national, state and regional economies - also predicted that the Southern California housing market is currently heading for a rebound.

More importantly, recent reports by the Building Industry Association of Southern California (BIA/SC) show that state and federal tax credit programs are showing success in jump - starting our housing market. Single-family home construction in Southern California showed a significant increase in April as 819 single-family permits were pulled in Los Angeles, Orange, Riverside, San Bernardino, Ventura and Imperial counties. In addition Multifamily permits for condominiums, town homes and apartment homes totaled 198 for the six-county region.

This development is particularly important as housing is both the foundation of our economy and the key to our long - term economic recovery.

"We are particularly encouraged by increases in single-family production in the Inland Empire. To see builders re - engaging in this market is a positive sign," said BIA/SC CEO Richard Lambros.

Lambros lauded the state of California for passing the $10,000 tax credit for new home buyers earlier this year which is exerting a positive impact on the market and stimulating new construction.

However, Lambros cautioned that this momentum could falter if the limit of the allotted funds is reached - particularly since every new home built generates $16,000 in revenue for the state.

Lambros said the Legislature "should extend the California Homebuyer Tax Credit so we can move the state on a road to recovery".

Along with the federal Homebuyers Tax Credit the California Homebuyer Tax Credit aims at reviving and stabilizing dormant real estate markets. When the California Homebuyer Tax Credit first took effect in March of this year, sales skyrocketed nearly 40 percent over the previous month. After only two months, tens of thousands of home buyers have returned to shopping for new homes and homebuilders are reporting increases in traffic of up to 80 percent in state - of - the - art new home communities and steady increases in home sales.

More importantly, each new home built generates as many as three new, permanent jobs.

The California Homebuyers Tax Credit provides up to $10,000 in credit (five percent of home price or $10,000, whichever is less) for the purchase of a newly constructed, previously unoccupied home. The credit offers reduced tax liability for home purchasers over three tax years in equal amounts. There are no income limits or first-time homebuyer requirements - it simply requires purchasers reside in the home for at least two consecutive years.

The California Homebuyers Tax Credit is currently scheduled to expire on March 1, 2010, or when funding authority runs out and the California Franchise Tax Board (FTB) reports that after only two months half the tax credits have been claimed.

However, the BIA is working with California lawmakers to extend the California Homebuyer Tax Credit to prompt our state's and region's economic recovery, create jobs and tax revenues and open the door of the American Dream of homeownership to as many of our neighbors as possible.

And have a happy National Homeownership Month.

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