Area building permit values down 45%
by April 5, 2010 7:49 am 63 views
Development in Greenwood and in the regional new home construction sector is not to blame for a more than 45% dip in combined building permit values in Fort Smith, Greenwood and Van Buren.
In March 2010, the three cities combined for a little more than $13.066 million in building permit values, down 45.2% from the $23.878 million in March 2009.
March 2009 benefitted from an expansion at Gerber Foods’ Fort Smith plant valued at $12 million.
The city of Fort Smith issued 307 permits valued at $9.225 million in March, down in value 56.9% compared to March 2009. However, the city’s new home construction sector was issued 31 permits valued at $5.976 million, a more vibrant month compared to the 21 new home permits valued at $2.02 million in March 2009.
Unfortunately, the March permit report continues a comparative decline in building activity in Fort Smith. The value of permits issued by Fort Smith during January and February totaled $16.803 million, down 12.9% from the same period in 2009
Greenwood officials issued 17 permits valued at $2.022 million, $1.931 million of that for 12 new home permits. The city issued just 2 permits valued at $210,210 in March 2009.
Van Buren posted 105 permits valued at $1.789 million in March, down 18% in value compared to the $2.182 million value of the 70 permits issued in March 2009. However, March 2009 came with a $1.25 million permit for an apartment complex.
March also brought 23 residential construction permits for Van Buren valued at $876,000, up 74% in value over the 40 permits valued at $503,000 in March 2009.
The strength in area new home construction provides early support to a Fitch Ratings report predicting the national housing market will improve in 2010 because “statistical and anecdotal information generally support the premise that a bottom has been reached in the housing market.” Fitch’s projections of a 14% increase in housing starts, 21% increase in new home sales and a 7.5% increase in existing home sales are increases “off a very low base” in 2009.